• 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
Technology di¤usion and increasing income inequality
Technology di¤usion and increasing income inequality

... this paper, we use an aggregate macroeconomic model and therefore we calibrate it to the capital share of income of the entire economy. As the top 10 % richest own roughly 80% of the …nancial wealth (see Wol¤ 2006), the capital share of income in the economy as a whole raised along with the one of t ...
Garrison Lect-1. 4 Hayek and Friedman
Garrison Lect-1. 4 Hayek and Friedman

... Holders of cash will…bid up the price of assets. If the extra demand is initially directed at a particular class of assets, say, government securities, or commercial paper, or the like, the result will be to pull the prices of such assets out of line with other assets and thus widen the area into wh ...
Document
Document

... between the old one and the new target.  The economy must now move to its new steady state by the principle of transition dynamics.  The change in the rate of inflation causes the AS curve to shift during the following period.  Firms adjust their expectation for inflation to account for the new l ...
The Data of Macroeconomics
The Data of Macroeconomics

... is much like the sale of a used good. There is spending by bread consumers, but there is inventory disinvestment by the firm. This negative spending by the firm offsets the positive spending by consumers, so the sale out of inventory does not affect GDP. The general rule is that when a firm increase ...
Cambridge IGCSE and O Level Economics Workbook Answers
Cambridge IGCSE and O Level Economics Workbook Answers

... the ability and the willingness of customers to pay a certain price to buy a particular good or service. See page 20 in the textbook for further guidance. 2 The correct answer is Option D. If consumers become more aware of the health issues related to sugar, they are less likely to buy sugar, shift ...
Introduction - Harvard Kennedy School
Introduction - Harvard Kennedy School

... government that was unable to reduce its budget deficit to the target would have to pay a substantial fine, which of course would add to the budget deficit -- an enforcement mechanism that does not help the credibility of the rule.7 Credibility can be a problem for budget institutions either with or ...
deficit spending and stabilization behaviour in austria
deficit spending and stabilization behaviour in austria

... discretionary budget policy are assessed. A marked rise in the long-term level of the ratio of the full-employment budget balance to nominal trend GDP (FEBB ratio) is clearly discernible after the first oil-price shock. Since 1987, the FEBB ratio has declined due to attempts at budget consolidation. ...
ppt
ppt

Chap11_12q_for print..
Chap11_12q_for print..

... C) expansionary shift in the LM curve. D) contractionary shift in the LM curve. 7. An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve  ______ ______. A) IS; shifts to the right  B) IS; does not shift     C) LM: shifts to the right    D) LM; does not  ...
Optimal Fiscal Policy with Endogenous Product Variety
Optimal Fiscal Policy with Endogenous Product Variety

Document
Document

... The Fed is likely to respond to a recessionary gap with an expansionary monetary policy intended to stimulate aggregate demand. The first step is an open-market purchase of government bonds, which puts additional money into circulation and lowers the nominal interest rate. The lower interest rate st ...
Unit 3 Review Answers
Unit 3 Review Answers

... B. increases the value of future obligations. C. increases certainty about the future. D. helps lenders. E. harms borrowers. ____ 47. You have gone to the bank to borrow money for one year. The nominal rate is 7.5%. The real rate of interest is 4%. Over the course of the year, overall prices increas ...
Fiscal Policy Statement
Fiscal Policy Statement

... introduced from the financial year 2010-11, has been around one-third of the Plan revenue expenditure. This component has to be increased to the level of two-thirds, i.e. around 67 per cent in order to eliminate the effective revenue deficit as mandated by the amended FRBM Act. In effect, this impli ...
Sample
Sample

... pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government. One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread, therefore, sells f ...
chapter iii balance of payments – theoretical
chapter iii balance of payments – theoretical

... The above analysis implies that national product (Y) differs from national expenditure or absorption (A= C + I d + G) by the amount of current account balance, or the difference between exports and imports of goods and services (including gifts), or X – M . In a nutshell, the current account balance ...
What Does Monetary Policy Do?
What Does Monetary Policy Do?

... has to identify it-give its elements economic interpretations.3The mathematicalmodel explains all variationin the data as arising from the independentdisturbances,E. Since we are studying the effects of monetarypolicy, we need to specify an element of the E vector, or a list of its elements, that re ...
TRYM - Treasury archive
TRYM - Treasury archive

... Aggregation has advantages in terms of simplicity of interpretation and making the model easier to maintain. It comes at a price, however. In general, it means that all the underlying causes of the behaviour of the aggregates are not necessarily identified (see Section 6.1.2). Effects from changes i ...
EN EN 1. Introduction Regulation (EU) No 473/2013 of the
EN EN 1. Introduction Regulation (EU) No 473/2013 of the

... The time profile of the measures should be specified in order to distinguish measures with a transitory budgetary effect that does not lead to a sustained change in the intertemporal budgetary position (i.e. in the permanent level of revenues or expenditure) from those having a permanent budgetary e ...
the macroeconomics of the trym model of the
the macroeconomics of the trym model of the

... Aggregation has advantages in terms of simplicity of interpretation and making the model easier to maintain. It comes at a price, however. In general, it means that all the underlying causes of the behaviour of the aggregates are not necessarily identified (see Section 6.1.2). Effects from changes i ...
1 Principles of Macroeconomics, 9e
1 Principles of Macroeconomics, 9e

... C) If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income level of $200 billion. D) Saving is negative at all income levels below $200 billion. Answer: A Diff: 3 Topic: The Keynesian Theory of Consumption Skill: Analytic AACSB: Analytic Skills ...
Overview of public expenditure management in Vietnam
Overview of public expenditure management in Vietnam

... macroeconomic management by state budget proved to be more coherent and more effective, contributing to avoidance of economic downturn and promotion of performance in a number of industries. - With expenditure strategy of prioritized capital and development investment, capital expenditure has alway ...
The End of the Great Depression: VAR Insight on the Roles of
The End of the Great Depression: VAR Insight on the Roles of

... But fiscal policy is also a credible candidate as a cause of the acceleration of real GDP  growth that started after 1940:Q2.  By creating new quarterly data for the interwar period, this  paper is able to shine a spotlight on the remarkably different behavior of government spending  in the last six ...
Chapter 33 PPT of Mankiw presented in class
Chapter 33 PPT of Mankiw presented in class

... price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and unemployment, but with a lower price level. ...
No Slide Title
No Slide Title

... The long-run aggregate supply curve • The long-run aggregate supply curve (LRAS) is a vertical line drawn at the level of GDP that is equal to potential GDP, Y*. • It is vertical because the total amount output that the economy produces when all factors are efficiently used at their normal rate of ...
mmi14-Fidrmuc Jan  19104740 en
mmi14-Fidrmuc Jan 19104740 en

... the changes in the CAPB supports the existence of non-Keynesian effects. On the other hand, several papers take issue with the results of the aforementioned empirical studies. First, the results can be plagued by selection bias, measurement error, spurious correlations, or simultaneity issues when i ...
< 1 ... 22 23 24 25 26 27 28 29 30 ... 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