• 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
What are automatic stabilizers and how do they
What are automatic stabilizers and how do they

overhead
overhead

... Taxes   AD  GDP Gov't Spending   AD  GDP Monetary Policy Res. Req.   MS  i  I  AD  GDP Disc. Rate   MS  i  I  AD  GDP Buy Bonds  MS  i  I  AD  GDP ...
Addressing the Institutional and Technical Challenges to a
Addressing the Institutional and Technical Challenges to a

... Full employment is not an option for all (zero sum game). Full employment achieved either through trade surplus or high deficit spending (government, business and household). Increasingly segmented labour markets and societies, as well as increasing gap between rich and poor countries, caused partly ...
Deficits and Debt
Deficits and Debt

... • Budget deficits and surpluses are a routine feature of counter-cyclical fiscal policy • The goal of macro policy is not to balance the budget but to balance the economy at fullemployment ...
ECON 102 Tutorial: Week 20
ECON 102 Tutorial: Week 20

... First, let’s define what is a liquidity trap: An economy is in a liquidity trap if money demand is perfectly elastic with respect to interest rate changes, i.e. the money demand curve is horizontal. • Even if the whole money demand is not horizontal it might be for a certain range of interest rates. ...
Choice, Change, Challenge, and Opportunity
Choice, Change, Challenge, and Opportunity

... If the decrease in employment is large, the total amount collected in taxes might decrease when the tax rate increases. ...
David Woodward
David Woodward

... Speculation Promotes Speculation Demand for speculative assets ...
Fiscal policy
Fiscal policy

... If the decrease in employment is large, the total amount collected in taxes might decrease when the tax rate increases. ...
Chapter 15
Chapter 15

... If the decrease in employment is large, the total amount collected in taxes might decrease when the tax rate increases. ...
Short answer essay
Short answer essay

... 3. The current function of gold in the US money supply is d. non-existent. 4. The most important factor that leads to an effective monetary body is b. relative independence from the central government. 5. An secondary effect of an increase in the Long Run Aggregate Supply is a(n) d. all of the above ...
Slide 1
Slide 1

... Broken Window Fallacy But if the money had not been spent repairing the window, it would have been spent on something else with a similar multiplier. The broken window is “what is seen,” whereas the alternative purchase is “what is unseen” (the opportunity cost). ...
ECON 102 Tutorial 2
ECON 102 Tutorial 2

... Which of the following would be an example of a consumption expenditure? (a) More spending by the government on children’s programs. ◦ This is government expenditure (b) An increase in welfare payments to single mothers. ◦ This is a government transfer (c) The purchase of a new car by the IPSCO stee ...
Macroeconomics Notes - North Allegheny School District
Macroeconomics Notes - North Allegheny School District

... to some new amount..RESULT: Prices have risen – called Inflation This is tied to the Business cycle since these 2 effects ONLY happen if the economy is growing More Jobs => More Demand => increased production and Increased prices In this version, AS – AD causes a fall from AD1 to AD2 1.)Price and Pr ...
chapter overview
chapter overview

The political economy of government debt
The political economy of government debt

... “Voting on the budget deficit” Different majorities may differ in their desired composition of government consumption. If the current majority can be replaced by a different majority in the future, the current one can have the incentive to favor budget deficit in order to influence future decisions. ...
COURSE CODE
COURSE CODE

... The Principles of Macroeconomics is the introductory, foundation course for all of macroeconomic theory. It provides the framework for subsequent intermediate macroeconomic theory courses and is any student's introduction to the analysis of economies at the aggregated (national or state) level. Macr ...
Peru_en.pdf
Peru_en.pdf

... terms, mainly as a result of increased capital spending. (b) Monetary and exchange-rate policy As regards monetary policy, it became necessary to tackle inflation, which had been above target since late 2007. Although the situation was triggered by higher international prices, the authorities felt ...
The Federal Government in 2040
The Federal Government in 2040

... Security, Medicare, and Medicaid will rise from 8.4 percent of gross domestic product this year to 15.6 percent by 2040, according to Congressional Budget Office projections. 1 Figure 1 shows that if all other government programs stay at the same size relative to the economy, the budget will grow fr ...
Chapter23
Chapter23

... situations that might lead to this “passive” supply response. The first is when the economy has many unemployed resources, both labour and capital. In this case, firms have excess capacity and they can increase output easily without driving up unit costs. The second situation is where firms are pric ...
inb#7 (2)
inb#7 (2)

... Explain the degree to which labor costs can vary from country to country Discuss the significance for businesspeople of the large foreign debts of some nations Discuss the new definition of economic development which includes more than economic growth ...
Bank of England Inflation Report May 2013
Bank of England Inflation Report May 2013

... Inflation Report May 2013 Demand ...
1 Aggregate Consumption, Aggregate Demand, GDP and the
1 Aggregate Consumption, Aggregate Demand, GDP and the

Exam - Version A
Exam - Version A

... 31) Cyclical unemployment is the: A) unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work. B) portion of unemployment that is due to mismatches between skills and jobs that result in a significant loss of jobs in certain industri ...
Q 1 A fall in the value of the dollar against other currencies makes
Q 1 A fall in the value of the dollar against other currencies makes

... aggregate output without the danger of inflation. The government would not need to respond with a change in policy. The least preferred shock would be a negative supply shock. The economy would experience stagflation. There would be lower aggregate output and higher inflation. There is no good polic ...
practice exam 3 macro questions
practice exam 3 macro questions

... the consumption curve? A. Saving is negative. B. Saving is positive. C. Saving is zero. D. Saving is equal to consumption. 9. If the marginal propensity to consume is 0.80 and the economy is in a deep recession, the Keynesian model indicates that a $50 billion increase in government spending ultimat ...
< 1 ... 428 429 430 431 432 433 434 435 436 ... 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