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U.S. Debt and Deficits: Time to Reverse the Trend
U.S. Debt and Deficits: Time to Reverse the Trend

... budget deficit (or surplus) would be if the economy were operating at a high level of employment. At full employment, for example, the federal budget may run a surplus. This means fiscal policy may not be expansionary enough even when the budget is in deficit. Do deficits matter? Why is there such wide ...
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... and net exports (NX). The quantity of real GDP demand is the total of all final goods and services that households, businesses, governments and foreigners plan to buy. This lesson explains the factors that determine aggregate demand. Just as in microeconomics, the students should understand the diff ...
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AP Government Chapter 16 Notes: Domestic and Economic Policy

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... of the US economy. Also, it was feared that the expansionary monetary policy will impede the necessary process of re-adjustment of the private sector. Thinking about the ruin of the economy in his country and his political career in retrospect, Herbert Hoover wrote bitterly for the staff in his admi ...
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Macroeconomics Powerpoint
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... • Total dollar value of all final goods and services produced in a nation in a single year – We only count the value of FINAL goods and services to avoid double counting. An economist would not include all of the parts of a computer being made and then the computer itself. They would just count the ...
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Money
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... recovery from the impact of coffee rust disease on 2013 production. Exports of palm oil and shrimp were also up, by a robust 8.1% apiece. Exports of goods for processing climbed 2.3% in 2014 after two years of contraction, on the strength of economic upturn in the United States, which is still the m ...
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Consumption and Aggregate Expenditure

... U.S. economy is about 1.4. For example, a sustained increase in autonomous spending of $10 billion into the U.S. economy can be expected to raise real GDP over time by $14 billion. ...
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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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