OCR AS Economics Unit F582
... 14 The concept of the multiplier refers to the fact that an injection into the circular flow of income of an economy may produce an increase in national income that is greater than the initial injection. For example, if the injection is £1 billion, but the effect of this injection is an increase in ...
... 14 The concept of the multiplier refers to the fact that an injection into the circular flow of income of an economy may produce an increase in national income that is greater than the initial injection. For example, if the injection is £1 billion, but the effect of this injection is an increase in ...
IFS Green Budget - Institute for Fiscal Studies
... public sector net debt as a share of national income relatively quickly. In the 2014 Autumn Statement, HM Treasury estimated that maintaining a 1% of national income surplus for a decade beyond 2019–20 would reduce public sector debt as a share of national income by 27 percentage points. If instead ...
... public sector net debt as a share of national income relatively quickly. In the 2014 Autumn Statement, HM Treasury estimated that maintaining a 1% of national income surplus for a decade beyond 2019–20 would reduce public sector debt as a share of national income by 27 percentage points. If instead ...
CFO11e_ch28
... were not zero). Second, the Fed was engaging in what Bernanke called “forward guidance.” Not only does the Fed now say at regular intervals what its current interest-rate policy is, but it gives guidance as to what it will do in the future. For example, the Fed indicated that interest rates would st ...
... were not zero). Second, the Fed was engaging in what Bernanke called “forward guidance.” Not only does the Fed now say at regular intervals what its current interest-rate policy is, but it gives guidance as to what it will do in the future. For example, the Fed indicated that interest rates would st ...
Business Cycles ppt
... 1. What are the 4 categories of spending that make up our GDP (by expenditure)? 2. How does the GDP of a country relate to its standard of living? ...
... 1. What are the 4 categories of spending that make up our GDP (by expenditure)? 2. How does the GDP of a country relate to its standard of living? ...
What is the Gross Domestic Product?
... The GNP took into account goods made overseas, by owners who lived in the US The switch happened because the GDP is a truer representation of production within the US ...
... The GNP took into account goods made overseas, by owners who lived in the US The switch happened because the GDP is a truer representation of production within the US ...
Poverty Reduction and Ecological Resilience through Genuine
... investment (path dependency) In the normal case a change does not call forth countervailing changes but, instead, supporting changes, which move the system in the same direction as the first change, but much further. Because of such circular causation a social process tends to become cumulative and ...
... investment (path dependency) In the normal case a change does not call forth countervailing changes but, instead, supporting changes, which move the system in the same direction as the first change, but much further. Because of such circular causation a social process tends to become cumulative and ...
What caused the Great Depression?
... • During most of the 1920s, the business cycle was in peak – Increase in consumer purchases of homes and durable goods – Towns and cities grew rapidly – State and local governments spent money to provide roads, sidewalks, water and sewage services – Homes were connected to telephone and electricity ...
... • During most of the 1920s, the business cycle was in peak – Increase in consumer purchases of homes and durable goods – Towns and cities grew rapidly – State and local governments spent money to provide roads, sidewalks, water and sewage services – Homes were connected to telephone and electricity ...
NATIONAL INCOME ACCOUNTING
... This is a greatly simplified model. One thing missing is the possibility of saving. If households do not spend all their income on produced goods and services, but hold some of it back as savings, every time income flows into the household sector the flow of payments made to producers will diminish. ...
... This is a greatly simplified model. One thing missing is the possibility of saving. If households do not spend all their income on produced goods and services, but hold some of it back as savings, every time income flows into the household sector the flow of payments made to producers will diminish. ...
Housework and fiscal expansions
... this paper we explicitly model a home-production sector and study the transmission of government expenditure shocks. As argued by Becker [6], consumption is the final stage of production, which takes place at the household level and com- ...
... this paper we explicitly model a home-production sector and study the transmission of government expenditure shocks. As argued by Becker [6], consumption is the final stage of production, which takes place at the household level and com- ...
the BP Curve
... This would occur if any deviation of the domestic i away from the international rate immediately triggered capital flows that brought interest rates back in line. When capital is perfectly mobile, the BP curve is a horizontal line. ...
... This would occur if any deviation of the domestic i away from the international rate immediately triggered capital flows that brought interest rates back in line. When capital is perfectly mobile, the BP curve is a horizontal line. ...
2014 Economics Written examination
... C. A small business chooses to increase production volumes while operating costs are relatively low and consciously boosts the company’s stock holdings in the short term. D. Australian householders become cautious about future employment prospects and increase their savings in bank accounts as a mea ...
... C. A small business chooses to increase production volumes while operating costs are relatively low and consciously boosts the company’s stock holdings in the short term. D. Australian householders become cautious about future employment prospects and increase their savings in bank accounts as a mea ...
Document
... Therefore, if government purchases, G, are unchanged， real transfers net of real taxes, V − T, must also be unchanged. For given G, we do not get any changes in household real income through the term V − T. In other words, if G is fixed, there are no income effects from a change inτw. Macroecono ...
... Therefore, if government purchases, G, are unchanged， real transfers net of real taxes, V − T, must also be unchanged. For given G, we do not get any changes in household real income through the term V − T. In other words, if G is fixed, there are no income effects from a change inτw. Macroecono ...
Managing Aggregate Demand
... – Raises the money supply – Drives up T-bill prices – Pushes interest rates down ...
... – Raises the money supply – Drives up T-bill prices – Pushes interest rates down ...
PPT
... barrel to less than $13 a barrel. The result: gasoline prices were lower than they had been in over 50 years. In 2005, oil prices shot up to $60 a barrel. • Reason: increased demand throughout the world, particularly in fastgrowing countries such as China and India. • Result: the economy appeared to ...
... barrel to less than $13 a barrel. The result: gasoline prices were lower than they had been in over 50 years. In 2005, oil prices shot up to $60 a barrel. • Reason: increased demand throughout the world, particularly in fastgrowing countries such as China and India. • Result: the economy appeared to ...
Fiscal Fallacies: The Failure of Activist Fiscal Policy
... But central banks are not limited to changes in official interest rates. Quantitative approaches to monetary policy can also be used. However, even if monetary policy were thought to be ineffective, this does not in itself re-establish the effectiveness of fiscal policy. During the boom years, many ...
... But central banks are not limited to changes in official interest rates. Quantitative approaches to monetary policy can also be used. However, even if monetary policy were thought to be ineffective, this does not in itself re-establish the effectiveness of fiscal policy. During the boom years, many ...
Slide 1
... Frenkel and Razin (1992): introduction of intertemp. budget constraint and gov. spending entering the utility function separably, interest rate movement depends on marginal savings propensity of domestic and foreign agents. ...
... Frenkel and Razin (1992): introduction of intertemp. budget constraint and gov. spending entering the utility function separably, interest rate movement depends on marginal savings propensity of domestic and foreign agents. ...
The Keynesian Framework
... • A relationship between the rate of interest on bonds and the level of investment spending by business firms • A negative relationship—when interest rates fall, investment spending will increase • Entrepreneurs invest as long as the rate of return on investment exceeds the rate of interest • If the ...
... • A relationship between the rate of interest on bonds and the level of investment spending by business firms • A negative relationship—when interest rates fall, investment spending will increase • Entrepreneurs invest as long as the rate of return on investment exceeds the rate of interest • If the ...
Chapter 32: Monetary Theory
... The Quantity Theory of Money - The Quantity Theory of Money states that price level changes are due to changes in the quantity of money. The Crude Quantity Theory of Money - The crude quantity theory states that the money supply is directly proportional to the price level. The Velocity of Circulatio ...
... The Quantity Theory of Money - The Quantity Theory of Money states that price level changes are due to changes in the quantity of money. The Crude Quantity Theory of Money - The crude quantity theory states that the money supply is directly proportional to the price level. The Velocity of Circulatio ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... In practice, the decision of a firm on how much to invest depends on, among other things, its expectation of future sales. The optimism or pessimism of entrepreneurs about the future course of the economy can have an important effect on current planned investment. Keynes used the phrase animal spiri ...
... In practice, the decision of a firm on how much to invest depends on, among other things, its expectation of future sales. The optimism or pessimism of entrepreneurs about the future course of the economy can have an important effect on current planned investment. Keynes used the phrase animal spiri ...
