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Chapter 1: Introduction (Word)
Chapter 1: Introduction (Word)

... The opening of the United States to the rest of the world was another of the major events of the second half of the 20th century. In fact, there had been some considerable opening to the rest of the world in the last part of the 19th century. But this was reversed, and the American economy was quite ...
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... The measures announced in last month’s Budget remain subject to controversy. Although the planned increase in personal allowances next year will boost the incomes of most workers, some will be impacted by the reduction in the 40% income tax threshold, while pensioners will be hit by a freeze in age- ...
Variable Names and Data Sources
Variable Names and Data Sources

... GOV = total government expenditure net of interest payments. 1870-1989: Gillespie (1991), pp.284-286; 1990-1996: Public Accounts of Canada 1996-97: 1997-2000: Federal Government Public Accounts, Table 3 Budgetary Revenues Department of Finance web site, September 2001. To this we add the return on g ...
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... Expected capital loss by government Lower income to older individuals relying on government interest rates Increased uncertainty— ...
CHAPTER 16: TEST BANK
CHAPTER 16: TEST BANK

... 14. Which causes greater expansion of the economy? a. an increase in taxes only b. an increase in government spending financed by an increase in taxes c. an increase in government spending financed by government borrowing d. the impact of all of these is equal 15. Increased government spending finan ...
Untitled - De Anza
Untitled - De Anza

... workers more productive.  G is government spending.  NX is “Net exports,” which equals  exports minus imports.  We’ll learn more about that in chapter 3.  If we remove the net  exports from the $500 billion, we’re left with $422 billion dollars’‐worth of goods and  services produced in Norway in 201 ...
Comments on Stefan Niemann and Jürgen von Hagen
Comments on Stefan Niemann and Jürgen von Hagen

PDF
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The Myth of Expansionary Austerity
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... These contractionary effects may be offset either by a reduction in the interest rates or through a positive effect on trade balances. These two effects, and their limitations, are discussed in the following sections. 3. Interest rates Austerity programs may lead to a reduction of the interest rates ...
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1601259BP_Haiti_en PDF - CEPAL

... quotas and preferential conditions established in the HOPE II and HELP agreements with the United States, could be affected by a scenario of greater protectionism and renegotiation of these terms. The country’s terms of trade improved by 6.6% as import prices fell by more than export prices. Foreign ...
quiz no.6 - Kuwait University - College of Business Administration
quiz no.6 - Kuwait University - College of Business Administration

... Name\ ------------------------------------------------------- Univ. No.\--------------------Serial No.\ -----------------1. Evidence strongly supports the view that countries with high inflation also have A) the lowest nominal interest rates. B) the highest rates of money growth. C) the smallest bud ...
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Exam (pdf - 278.08kb)
Exam (pdf - 278.08kb)

... (AD) in the Australian economy. Without steady growth in AD, Australia could experience the symptoms of macroeconomic contraction such as increased unemployment as well as the symptoms of excessive macroeconomic expansion such as increased domestic inflation, and damage to the external trading posit ...
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... or empirical justification for a fiscal multiplier of this magnitude in the USA, cf. e.g. Barro (2009) and Cogan et al. (2010). This debate has rekindled interest in new, empirical analyses of the effects of fiscal policy. These consist of direct effects, e.g. that an increase in public purchases of ...
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... contraction of 0.1% in 2013, after remaining flat at 0.0% in 2012. The downtrend continued into the first quarter of 2014, when the economy declined by a further 0.4%. Underlying this persistent sluggishness is the ongoing underperformance of the tourism sector, the country’s main economic driver, w ...
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... in addition to the crisis-related stimulus (see Dolls et al 2010). In contrast, emerging markets with a more limited safety net but with larger fiscal space tend to benefit by a more aggressive crisis-related fiscal stimulus, compensating partially for the absence of deeper social insurance. A usefu ...
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Answers to Practice Problems 2005
Answers to Practice Problems 2005

... curve left/up. Since the natural rate of unemployment has risen, the natural rate of output will fall as well. What about the effect on AD? We are not really certain about this. Higher costs might mean lower profits for investors, so investment might drop as a result. In this case, the AD curve woul ...
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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.
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