• 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
Mr. Mayer AP Macroeconomics
Mr. Mayer AP Macroeconomics

... • Spending in order to increase future output or productivity – Business spending on capital – New construction – Change in unsold inventories ...
A 200
A 200

... the Internal Revenue Service spends more than it collects in taxes in a given year c. the federal government spends more than it collects in taxes in a given year d. high levels of unemployment use up tax collections e. interest payments on the national debt increase from one year to the next ...
Substitute, cancel C and rearrange to get
Substitute, cancel C and rearrange to get

... GDP as the sum of “values added” • Finding C, I, G and net X is difficult. • Values are estimated based on statistical analysis. • GDP is calculated by adding up all values added. ...
PDF file - Sanjay K. Chugh
PDF file - Sanjay K. Chugh

... Distortionary Taxes and the Failure of Ricardian Equivalence Let’s think a little more carefully about the nature of the taxes that the government collected in the above description. The taxes collected in period 1 and 2 did not depend in any way on any choices that individual consumers made. That i ...
living on borrowed time - The Centre for Independent Studies
living on borrowed time - The Centre for Independent Studies

marking scheme - Kendriya Vidyalaya No.1 Salt Lake
marking scheme - Kendriya Vidyalaya No.1 Salt Lake

... Freedom of entry and exit of firms under perfect competition means that there are no costs or barriers a firm faces to enter or exit the market. The implication of this is that in the long run each firm earns only normal profit. Suppose in the short run, existing firms are earning super normal profi ...
Practice Test Unit IV
Practice Test Unit IV

... D. a reduction in Federal tax rates on personal and corporate income 15. Assume that aggregate demand in the economy is excessive, causing demand-pull inflation. Which of the following would be most in accord with appropriate government fiscal policy? A. an increase in Federal income tax rates B. an ...
Lecture 1: Concepts of Development and Underdevelopment What
Lecture 1: Concepts of Development and Underdevelopment What

... income of non-residents located in that country. Basically, GNP measures the value of goods and services that the country's citizens produced regardless of their location. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of l ...
Ребаланс буџета и фискална политика у 2008. години
Ребаланс буџета и фискална политика у 2008. години

... • Use regulatory reform to create a more favorable climate for growth of private investments and employment ...
Multiplier Effects of Government Spending: A Tale of China∗
Multiplier Effects of Government Spending: A Tale of China∗

... opportunity to test the Keynesian notion that government expenditures (even as a pure waste of aggregate resources) can have a multiplier larger than 1 on aggregate income. We use both nationwide and regional data from post-reform China to estimate the multiplier e¤ects of government spending, de…ne ...
Quarterly Review and Outlook - CMG Capital Management Group
Quarterly Review and Outlook - CMG Capital Management Group

... The 2016 presidential election has brought about widely anticipated changes in fiscal policy actions. First, tax reductions for both the household and corporate sectors along with a major reform of the tax code have been proposed. In conjunction, a novel program of tax credits to the private sector ...
Long Run changes for AP Prep
Long Run changes for AP Prep

... How does the economy fix itself? • In the short run wages do not adjust to price level changes. We don’t get a raise every month when CPI numbers are released. • In the long run wages will adjust to price level changes. • If we are in a recession, wages go down – People lose their jobs and take low ...
Answer key
Answer key

... We obtain that 9999999 is an outlier, but not 0. We still may want to include 0 as an anomalous value because most households do receive some sort of income even if it is undeclared (unemployed individuals may receive money from their parents or relatives, for example). Some of those zero income ent ...
Most countries, including the United States, import substantial
Most countries, including the United States, import substantial

... a. More investment would lead to faster economic growth in the short run. b. The change would benefit many people in society who would have higher incomes as the result of faster economic growth. However, there might be a transition period in which workers and owners in consumption-good industries w ...
Which of the following statements is true
Which of the following statements is true

... how this policy change will change the underlying behavior represented in the loanable funds market, and show in the diagram that you drew above how this changes one or both of the curves and the equilibrium. (You should ignore, here, the effects that this policy might eventually have on the product ...
growth2016q2
growth2016q2

Chapter 17. Expectations, Output
Chapter 17. Expectations, Output

Document
Document

... • Part of federal budget deficit that is independent of business cycle ...
Sit Investment 29th Annual Client Workshop
Sit Investment 29th Annual Client Workshop

... assets. The capacity utilization rate for production facilities increased to 79.2% by December, compared with a 2009 recession low of 66.9%, and a 1972-2013 average of 80.1%. Fluctuating quarterly inventory spending contributed a solid 0.26 percentage point to the GDP growth rate. Inventory spending ...
Chapter 13 (12 in 8 th edition) Balance of Payments Accounting
Chapter 13 (12 in 8 th edition) Balance of Payments Accounting

... NI = GNP – Depreciation – IBT + Unilateral Transfers For purposes of macro analysis, ...
Economics Principles and Applications
Economics Principles and Applications

... • Part of federal budget deficit that is independent of business cycle ...
Measuring Economic Performance
Measuring Economic Performance

... Information on employment comes from 2 surveys: households and other establishments (offices, factories, stores, mines, etc). Employment is not a complete measure of labor input in production. The average number of hours falls during recessions and rises during recoveries. A better measure is total ...
Chapter 34
Chapter 34

... proposed changes to stimulate saving would primarily benefit the wealthy and also might have only a small effect on private saving. ...
ch16
ch16

... billion of GDP. But only 20 percent of the $787 billion stimulus package had been spent (or taken in tax breaks), so the stimulus was only about $160 billion. If government outlays of $160 billion created $65 billion of GDP, the multiplier was 0.4 (65/160 = 0.4). ...
PDF
PDF

... employment and reduc ing rural emigration has led to programs directly benefiting the Brazilian agriculture sector and would have a economic reasoning. In spite of a general weakening of Brazilian government econo mic intervention and the unsatisfactory results from earlier interventions in the agri ...
< 1 ... 337 338 339 340 341 342 343 344 345 ... 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