• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Chapter 15
Chapter 15

... a. The inclusion of intermediate goods and services in GDP calculations would underestimate our nation’s production level. b. The expenditures approach sums the compensation of employees, rents, profits, net interest, and non-income expenses for depreciation and indirect business taxes. c. Real GDP ...
Real Estate Economics
Real Estate Economics

T F -M P
T F -M P

... since such efforts take the form of monetizing debt—i.e., purchasing T-bills with new reserves and currency. In either case, the Fed’s act of buying T-bills is surely quite different from the Treasury selling them. And the Fed does not need budget deficits to be a big buyer, because there are plenty ...
MEXICO
MEXICO

... and entrenching the power of monopolists, party bosses, and other mafias. Billions of narcodollars enter Mexico each year from the U.S., affecting politics particularly at the state and local levels. Contracts are generally upheld, but courts are inefficient and vulnerable to political interference. ...
“Keep It Simple
“Keep It Simple

... always a matter of degree. Anyone, for example, who buys gasoline or GAP T-shirts with a credit card understands debt. Debt, of course, is not apriori a bad thing. But then again, if we use that same credit card to buy a Ferrari, we better have a pretty strong conviction about our balance sheet or p ...
Should The Fed Consider Income Inequality When Setting Monetary
Should The Fed Consider Income Inequality When Setting Monetary

... acknowledge that extreme income concentration and reduced social mobility for those at the bottom are serious issues, we question whether there is even any way to factor this into a proper monetary policy solution. The Fed's "dual mandate" is to promote stable prices and maximum employment. If incre ...
Should The Fed Consider Income Inequality When Setting Monetary
Should The Fed Consider Income Inequality When Setting Monetary

... acknowledge that extreme income concentration and reduced social mobility for those at the bottom are serious issues, we question whether there is even any way to factor this into a proper monetary policy solution. The Fed's "dual mandate" is to promote stable prices and maximum employment. If incre ...
Fiscal Policy in an Open Economy
Fiscal Policy in an Open Economy

... the typical productivity shock in the standard real business cycle models: The demand for labor and capital goes up along with production, and this generates a positive comovement of consumption, investment and labor. There is an important interaction between exogenous changes in tax rates or in pub ...
Preview Sample 1
Preview Sample 1

... is not intended to be a measure of social well-being and thus the exclusion of environmental degradation from the official statistics is not considered a flaw in GDP. However, if GDP is intended to measure the total production of all goods and services in an economy, the exclusion of household produ ...
21-Aggregate D&S - BYU Marriott School
21-Aggregate D&S - BYU Marriott School

... Conclusions: The Fed does more harm than good when it tries to tinker with money supply. ...
document
document

... training, provide job search assistance, subsidize part-time employment,...) ...
A Short Term Vision for Economic Recovery
A Short Term Vision for Economic Recovery

Keynesian government spending multipliers and - ECB
Keynesian government spending multipliers and - ECB

... and may even cause an initial contraction. In a deep recession, the zero-bound on nominal interest rates may cause the central bank to abstain to raise interest rates in response to a fiscal stimulus as in normal times, because its notional interest target is below zero. Such implicit monetary accomm ...
Income Distribution and Market Demand: The Case of Heterogeneous Preferences
Income Distribution and Market Demand: The Case of Heterogeneous Preferences

... In recent years, a number of studies have focused on modeling income inequality using majorization relation (see, e.g., Marshall and Olkin [6]) and applications of the latter concept to the problems in economics. The approach to the analysis of income inequality based on majorization which dates bac ...
1 Objectives for Chapter 12: The Great Depression (1929 to 1941
1 Objectives for Chapter 12: The Great Depression (1929 to 1941

... 80% of the value of all of the shares of stock had simply disappeared. What effect does it have if the value of stocks declines? In fact, there are two major effects. First, the decline in the value of stocks made many people poorer (the wealth effect). As we will see in Chapter 14, when people beco ...
ECO 120- Macroeconomics
ECO 120- Macroeconomics

... They want solutions to problems such as: ...
Preview Sample 2
Preview Sample 2

... remember to be respectful of different viewpoints. Clearly, recommendations among the various groups will vary dramatically. Responses should incorporate the moral implications of each decision, remembering that promises of payment have been made long before checks are due to be cut. From an economi ...
Federal Budget Tipsheet: Debt and Deficit
Federal Budget Tipsheet: Debt and Deficit

... groups in Congress, feature deficit reduction through either decreased spending or increased revenues, or both. For instance, the president’s proposed fiscal year 2016 budget would run a deficit of $474 billion in fiscal 2016,4 with plans to achieve $1.8 trillion in total deficit reduction over 10 y ...
WHAT`S IMPORTANT IN……
WHAT`S IMPORTANT IN……

... Fisher Effect: Nominal interest rate adjusts to expected inflation a. Impact of “monetary neutrality” on interest rates b. Real interest rate = Nominal interest rate – Inflation c. Nominal interest rate = Real interest rate + Inflation i. Real rate determined by supply and demand in the market for l ...
Deficits And Debt - CERGE-EI
Deficits And Debt - CERGE-EI

... Fiscal policy is categorized as follows: Fiscal stimulus is measured by the increase in the structural deficit (or shrinkage in the structural surplus). Fiscal restraint is gauged by the decrease in the structural deficit (or increase in the structural surplus). ...
Net Foreign Debt - Kevin Ladd Simonds
Net Foreign Debt - Kevin Ladd Simonds

... credit more affordable if domestic interest rates are high (Australian interest rates are generally higher than in Europe and North America) ...
Intermediate Macroeconomics Second Year Section (1)
Intermediate Macroeconomics Second Year Section (1)

Ronald Reagan and the Spirit of Free Enterprise
Ronald Reagan and the Spirit of Free Enterprise

... Hollywood who simply stopped working when their marginal tax rates rose over 50 percent. A rate high on the Laffer Curve, as Reagan knew, means more work for more income pays less well than maneuvers to avoid taxes on existing income. According to my research, the correct curve shows that tax rates ...
THE EMPLOYMENT ACT OF 1946: THE ANALYSIS OF
THE EMPLOYMENT ACT OF 1946: THE ANALYSIS OF

Slide 1
Slide 1

... Estimated growth in individual giving and tax-efficient giving (adjusted for inflation at 2002 prices) £ bn ...
< 1 ... 250 251 252 253 254 255 256 257 258 ... 580 >

Fiscal multiplier

In economics, the fiscal multiplier (not to be confused with monetary multiplier) is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending (private investment spending, consumer spending, government spending, or spending by foreigners on the country's exports) that causes it. When this multiplier exceeds one, the enhanced effect on national income is called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased consumption spending, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in national income greater than the initial incremental amount of spending. In other words, an initial change in aggregate demand may cause a change in aggregate output (and hence the aggregate income that it generates) that is a multiple of the initial change.The existence of a multiplier effect was initially proposed by Keynes student Richard Kahn in 1930 and published in 1931. Some other schools of economic thought reject or downplay the importance of multiplier effects, particularly in terms of the long run. The multiplier effect has been used as an argument for the efficacy of government spending or taxation relief to stimulate aggregate demand.In certain cases multiplier values less than one have been empirically measured (an example is sports stadiums), suggesting that certain types of government spending crowd out private investment or consumer spending that would have otherwise taken place. This crowding out can occur because the initial increase in spending may cause an increase in interest rates or in the price level. In 2009, The Economist magazine noted ""economists are in fact deeply divided about how well, or indeed whether, such stimulus works"", partly because of a lack of empirical data from non-military based stimulus. New evidence came from the American Recovery and Reinvestment Act of 2009, whose benefits were projected based on fiscal multipliers and which was in fact followed - from 2010 to 2012 - by a slowing of job loss and private sector job growth.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report