• 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
Slide 1
Slide 1

... international sources, in the final analysis all such support comes from the global and national levels of income. • If we assume that decline in international support will follow UK trend, where DFID has cut by 32%, it follows that sustainability will require countries to find significantly more do ...
A rise in the price of oil imports has resulted in a decrease of short
A rise in the price of oil imports has resulted in a decrease of short

... 8. What is it that gives paper currency its value? a. It is backed by gold. b. It is so useful an item. c. The knowledge that all societies in history have used paper currency. d. That people believe it has value. 9. If the Federal Reserve Board wants to increase the money supply, they will: a. Buy ...
MACROECONOMICS OUTPUT
MACROECONOMICS OUTPUT

... Ig Gross private investments  purchase of capital goods such as robots, machines, and factories  change in inventories such as goods awaiting sale  residential investment = purchase of new residential homes by the household sector ...
This PDF is a selec on from a published volume... Bureau of Economic Research
This PDF is a selec on from a published volume... Bureau of Economic Research

... Perotti (2002), Mountford and Uhlig (2009), Fisher and Peters (2010), Auerbach and Gorodnichenko (2012), and Ramey (2011c). Some of these papers calculate the multipliers based on comparing the peak of the government spending response to the peak of the GDP response. Others compare the area under th ...
Greek fiscal multipliers revisited Government spending
Greek fiscal multipliers revisited Government spending

Issue Brief
Issue Brief

... for the program would reach nearly $1.3 trillion, or 4.7 percent of GDP, if current laws remained in place. Medicare also collects substantial offsetting receipts — mostly in the form of premiums paid by beneficiaries — which, in CBO’s baseline projections, rise from $101 billion in 2016 to $210 bil ...
Debunking Myths of the Great Depression
Debunking Myths of the Great Depression

... the jobs created by New Deal spending, but it is more difficult to see the jobs destroyed by the high taxes needed to pay for the New Deal programs. Of course, taking money away from entrepreneurs in the private sector will only hurt economic growth. In 1931, a year before FDR was elected president, ...
Chap 29
Chap 29

... consumption expenditure, investment, government purchases of goods and services, and net exports—sum to real GDP. Aggregate planned expenditure equals planned consumption expenditure plus planned investment plus ...
Real GDP with a Fixed Price Level
Real GDP with a Fixed Price Level

... consumption expenditure, investment, government purchases of goods and services, and net exports—sum to real GDP. Aggregate planned expenditure equals planned consumption expenditure plus planned investment plus ...
A Note on Macroeconomic Policy that is Good for the Poor
A Note on Macroeconomic Policy that is Good for the Poor

... the poorest countries, capital and information markets work less well, and the poor and middle strata, with limited collateral, are likely to have limited access to borrowing, reducing a country’s growth. Limited access to the capital market is probably the case for the rural poor and even urban mi ...
Document
Document

... consumption expenditure, investment, government purchases of goods and services, and net exports—sum to real GDP. Aggregate planned expenditure equals planned consumption expenditure plus planned investment plus ...
UNITED NATIONS
UNITED NATIONS

... meeting. That raised the possibility that policy makers would stop giving strong hints about where interest rates are headed. Economists took this to mean that rates are getting close to “neutral” , although the Fed has never defined that level. However, the minutes’ release did nothing to really c ...
Institutional Conditions of Expansionary Fiscal Consolidations
Institutional Conditions of Expansionary Fiscal Consolidations

... Recently, the short-term effects of fiscal consolidation have attracted increasing attention from both the academia and policy-makers. Authors in the literature on non-Keynesian effects usually put the emphasis on the need for the devaluation of the national currency, the accommodating reaction of t ...
Defining Economic Freedom
Defining Economic Freedom

... fiscal freedom) and in terms of spending. Government spending comes in many forms. Some government spending—for example, to provide infrastructure, fund research, or improve human capital—may be considered investment. Government also spends on public goods, the benefits of which accrue broadly to so ...
Intermediate Macroeconomics
Intermediate Macroeconomics

... The most striking examples of a complete breakdown of stability in the rate of interest, due to the liquidity function flattening out in one direction or the other, have occurred in very abnormal circumstances. In Russia and Central Europe after the war a currency crisis or flight from the currency ...
WHAT ROLE WITHIN THE EU FRAMEWORK DOES THE QUALITY
WHAT ROLE WITHIN THE EU FRAMEWORK DOES THE QUALITY

... react flexibility to asymmetric economic developments. At the level of the EU, the most urgent task has been to achieve enhanced co-ordination of the macro-economic function of national budgets. Once that budget systems are able to fulfill the requirements of aggregate discipline and a degree of sta ...
The Aggregate-Demand/Aggregate
The Aggregate-Demand/Aggregate

... • Future consumption spending on the part of consumers (businesses want to anticipate consumer demand) • Firms’ ability to pay for the new capital – May use retained earnings in times of profit ...
Session 1: Micro-Economics
Session 1: Micro-Economics

... Checks and bank notes Food stamps Foreign currency Credit cards ...
Presentation
Presentation

... Fiscal policy is contributing to uncertainty Stop-go nature of fiscal policy contributes to policy uncertainty ...
Due Date: Friday, September 17th
Due Date: Friday, September 17th

... restoring the original equilibrium point. b) An exogenous increase in the price of oil. An exogenous increase in the price of oil is an adverse supply shock that causes the short-run aggregate supply curve to shift upward. ...
Brian Olden (IMF)
Brian Olden (IMF)

R. Beetsma
R. Beetsma

... Baseline Specification Robustness Estimates based on unadjusted primary deficit Small versus large countries ...
policy analysis - Zambia Institute for Policy Analysis and Research
policy analysis - Zambia Institute for Policy Analysis and Research

... Copper prices collapsed, falling by 35% in 2015, & cause trade & current account deficits. ...
Chapter_23
Chapter_23

... business expectations and government policies will change aggregate demand Net exports – Change in the value of exchange rate, income levels abroad and price of competitive foreign goods ...
National Debt - Reading Community Schools
National Debt - Reading Community Schools

... • 26% of the current GDP is government spending. What happens when we cut government spending? • What happens to the economy when we cut taxes? • Should we address the national debt/entitlements now with a phase-in plan or now with drastic cuts and tax increases? Support your answer. URL: http://www ...
< 1 ... 252 253 254 255 256 257 258 259 260 ... 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