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... 2002 through December 31, 2002 Expenditures (Uses) Consumption (spending on goods and services) ...
Chapter 2
Chapter 2

... 4. Final goods and services  a. Don’t count intermediate goods and services  b. Capital goods (goods used to produce other goods) are final goods since they aren’t used up in the same period that they are produced  c. Inventory investment (the amount that inventories of unsold finished goods, goo ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics

... found in table 5, wherein the higher the debt / tax revenue and the higher the trade openness, the smaller the fiscal stimulus. A 1 percentage point increase in the debt / tax revenue induces a 0.004 percentage point reduction in the stimulus size (0.026 percentage point reduction if endogeneity is ...
The effects of a government expenditures shock
The effects of a government expenditures shock

... RBC model by including imperfect competition, price-setting and wage-setting frictions, lumpsum taxation, investment adjustment costs and also non-Ricardian rule-of-thumb consumers, which are consumers that consume all their available disposable income in each period, to obtain the result that unde ...
and unemployment
and unemployment

PDF - Urban Institute
PDF - Urban Institute

... Next year, our debt will exceed 60 percent of our total economic output, or gross domestic product (GDP). We would not meet the standards Poland and Estonia needed to qualify for admission into the European Union. In 2023, our debt will exceed 100 percent of GDP — the highest level since World War I ...
Lesson 9 - Fiscal Policy
Lesson 9 - Fiscal Policy

... b) Administration Lag: The administration lag at the Federal level is the time it takes for Congress to debate and approve a fiscal policy bill, and to get the President to sign the bill. Once the economic condition is recognized, then Congress and the President have to approve discretionary fiscal ...
using the - Bank of England
using the - Bank of England

Chart
Chart

... Public Debt (Percent of GDP unless noted otherwise) Fiscal deficits and public debt are very high in many advanced economies. Although policy became much less stimulatory in 2010, real GDP growth picked up, suggesting a handoff from public to private demand. For 2011, fiscal consolidation is expecte ...
Exam 3
Exam 3

... a. the economy will return quickly to full employment in most cases b. if output is below its potential, the economy will soon return to full employment c. production can be stuck below its full-employment level for extended periods of time d. the Great Depression proved that classical economics doe ...
ECONOMICS KEYNES VS. HAYEK QUIZ
ECONOMICS KEYNES VS. HAYEK QUIZ

... A. The total supply of products available to all Americans in the United States B. The total demand for all products and services in the United States C. The total demand for a single product or service by individuals in specific regions of the United States D. The total supply of specific products ...
The Economics of Private Legal and Defense Services
The Economics of Private Legal and Defense Services

... industrial leaders a new sense of their responsibilities…Never before have they been called upon to act together.” ...
Fiscal Policy and Macroeconomic Performance: an Overview
Fiscal Policy and Macroeconomic Performance: an Overview

... not have a direct impact on aggregate demand but rather only work through their impact on disposable income and consumption (which will rise less than transfers if part of the latter is saved). Since this framework does not account for supply constraints, spending multipliers can be quite large, ren ...
National Accounts
National Accounts

Answers 2008 Exam
Answers 2008 Exam

... or by measuring changes in net social welfare. Real gross domestic production (Real GDP) could also be used to measure the growth of an economy. ...
PowerPoint-Presentation
PowerPoint-Presentation

... which investigates which policies can avoid an unstable deflationary spiral, which arises in a standard New Keynesian model with active monetary policy and passive fiscal policy, a zero lower bound on interest rates and adaptive learning by the private agents. ...
Fiscal IQ Quiz - Deficit Ranger
Fiscal IQ Quiz - Deficit Ranger

... voluntary programs Parts B & D. Under reasonable assumptions, on average, people do not contribute enough over their lifetimes to account for the amount of benefits they receive from both Social Security and Medicare combined. However, the difference is much more significant for Medicare than Social ...
contract - frickman
contract - frickman

... – The economy stops growing (reached the top) – GDP reaches maximum – Businesses can’t produce any more or hire more people – Cycle begins to contract ...
Chpt 17 pp
Chpt 17 pp

... What is the crowding-out effect? When federal government borrowing increases interest rates, the result is lower consumption and investments ...
File - Year 11 Economics NIS
File - Year 11 Economics NIS

... Inflation can be defined as an increase in the average levels of prices in an economy. Governments actually go to the shops and look at the prices of many products periodically. Over time, they can measure changes in average prices. The actual index for this average price measurement is called the C ...
Document
Document

... Equilibrium GDP is the output level at which the aggregate expenditure line intersects the 45 degree line. If firms produce this output level, their inventories will not change, and they will be content to continue producing the same level of output in the future. © 2001 South-Western, a division of ...
Previous Exam - Napa Valley College
Previous Exam - Napa Valley College

... Event: The drought and extreme heat waves ruin crops of corn, alfalfa and other feed corps. Graph---include all 9 labels. Explanation: NO POINTS without an explanation. Which curve shifts and why? ...
syllabus
syllabus

... main concepts and principles of macroeconomic theory and policy. The course deals with the problems of aggregate product and national income determination, measurement and problems of unemployment and inflation and their trade-off, commodity market equilibrium, money supply, economic growth and econ ...
Press summary (PDF, 131 KB)
Press summary (PDF, 131 KB)

... Eurozone gradually stabilises over the forecasting period and that confidence, especially on the part of investors, is restored. Should the situation in the Eurozone continue to deteriorate, this will also impact the German economy. Over the forecasting period as a whole the downside risks prevail a ...
A budget to promote employment, welfare, and security
A budget to promote employment, welfare, and security

... effectiveness of low interest rates and put pressure on the exchange rate. We also cannot replace jobs in the petroleum sector with a massive increase in public sector employment. To succeed with the necessary economic rebalancing we need to prioritize measures that sustain long-term growth and stre ...
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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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