• 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
SMS211 - National Open University of Nigeria
SMS211 - National Open University of Nigeria

... 3.2.1 Advantages and Disadvantages of Aggregation in Macroeconomics The practice of aggregation has advantages and disadvantages or problems. The Advantages One of the major advantages of working with highly aggregated variables is that they confer a high degree of stability to aggregate relations t ...
Chapter 16: Monetary Policy
Chapter 16: Monetary Policy

... Effect of an Easy Money Policy ...
Good
Good

... Consumption expenditures (C): Consumption expenditure or simply consumption consists of the goods and services bought by households or consumers. It includes both buying of nondurable goods (such as food and clothing) and durable goods (such as cars and TV’s). It also includes services bought by hou ...
Document
Document

... three decades. Panama is the only country that shows a balance in using direct and indirect taxes for government revenue. Other Central American countries primarily used indirect taxes to collect public revenue. Public revenues were insufficient to finance public expenditures which led the Central A ...
Mankiw 5/e Chapter 10: Aggregate Demand I
Mankiw 5/e Chapter 10: Aggregate Demand I

... Response 3: hold Y constant If Congress raises G, the IS curve shifts right To keep Y constant, Fed reduces M to shift LM curve left. ...
ECONOMICS - University of Maryland, College Park
ECONOMICS - University of Maryland, College Park

... • Consequences of budget deficit – raising interest rates (Loanable funds) – crowding out consumption and investment spending – an increase in the government’s debt ...
PROBLEMS AND SOLUTIONS for B-level course Joakim Persson
PROBLEMS AND SOLUTIONS for B-level course Joakim Persson

Inclusive Prosperity Without the Prosperity: the Limits of the “Middle
Inclusive Prosperity Without the Prosperity: the Limits of the “Middle

... Postwar Keynesian demand-side framing argued that robust demand was needed to keep the economy at full employment and avoid recessions. But in the past 15 years, the Keynesian left has attempted to modernize this narrative around long-term growth. In 2000, in their book Growing Prosperity: The Battl ...
Merit Motives and Government Intervention
Merit Motives and Government Intervention

... less fortunate through redistributive tax and spending programs. Many view this as the main purpose of government activity and therefore argue that economic efficiency can be sacrificed for redistributive purposes. This classic efficiency-redistribution tradeoff in public finance has guided much of ...
Has Policy Uncertainty Slowed the Recovery?
Has Policy Uncertainty Slowed the Recovery?

... Notes: Index of Policy-Related Economic Uncertainty composed of quarterly news articles containing uncertain or uncertainty, economic or economy, and policy relevant terms (scaled by the smoothed total number of articles) in 5 newspapers (WP, BG, LAT, WSJ and CHT). Data normalized to 100 from Jan 19 ...
Is Deflation a Risk For Greece?
Is Deflation a Risk For Greece?

... will be self-corrected without policy intervention. On the other hand, if deflation persists, consumers may decide to postpone consumption, especially of luxury or big-ticket products and services, as they believe that prices in period (t+2) will be even lower than in period (t+1). Accordingly, inve ...
On the low-frequency relationship between public deficits and inflation
On the low-frequency relationship between public deficits and inflation

... debt, and describe how we measure the low-frequency relationship between them. Both time series range from 1875 to 2011. Following Sargent and Surico (2011), inflation (π) is measured as year-to-year first differences of the logarithmic GDP deflator, where the data is taken from the FRED II database ...
Economic Development and Consumption Inequality: Evidence and Theory
Economic Development and Consumption Inequality: Evidence and Theory

... rather than income, is the better indicator of household living standards” regardless of which particular consumption theory one subscribes to. The material well-beings of individuals are determined by the goods and services they actually consume, which often di¤er from their income as they take mea ...
macropolicy in the rise and fall of the golden age
macropolicy in the rise and fall of the golden age

... type during the 1970s. Austerity may and therefore profitability, without on unit labor costs. ...
Chapter 6.pmd
Chapter 6.pmd

... and at what price. Her demand for pounds would constitute a demand for foreign exchange which would be supplied in the foreign exchange market – the market in which national currencies are traded for one another. The major participants in this market are commercial banks, foreign exchange brokers an ...
Slide 1
Slide 1

... critics of active policy argue that such policies may destabilize the economy rather than help it: By the time the policies affect agg demand, the economy’s condition may have changed. ...
Long Run and Short Run Effects of Government Expenditures on
Long Run and Short Run Effects of Government Expenditures on

... these conditions, higher current expenditures of the government stimulate demand for products, which in turn allows producers to increase use of their productive capacities by hiring new capital, labor and thus to expand production. The effect of the current expenditures will be long-lasting if the ...
Chap 27
Chap 27

... Monetary policy shares the limitations of fiscal policy, except that there is no law-making time lag or uncertainty. It also has the additional limitation that the effects of monetary policy are long drawn out, indirect, and depend on responsiveness of spending to interest rates. These effects are a ...
Low unemployment
Low unemployment

... slandard ol living [or those that are unemployed and perhaps Lheir families as well. The cosls worsen the lonlier the peoplc are unemploycd. It is quite likcly that a person who remains uncmployed lor a long period of time could bccomc increasingly dcjected and this could contribute ro high levels o ...
NBER WORKING PAPER SERIES A SOLUTION TO FISCAL PROCYCLICALITY:
NBER WORKING PAPER SERIES A SOLUTION TO FISCAL PROCYCLICALITY:

... each mid-year to make the judgments regarding the output gap and the medium term equilibrium price of copper. The experts on the copper panel are drawn from mining companies, the financial sector, research centers, and universities. The government then follows a set of procedures that translates the ...
(2011): DELFI: DNB`s Macroeconomic Policy Model of the Netherlands
(2011): DELFI: DNB`s Macroeconomic Policy Model of the Netherlands

... user to analyze the effects of financial turmoil. If pension funds see their funding ratios drop below the regulatory minimum, they might decide to raise the pension premium or reduce benefits. Both actions affect the real economy, either by increasing production costs or by lowering disposable inco ...
IMF, Debt, Budget, Alternatives - Campaign for Social and Economic
IMF, Debt, Budget, Alternatives - Campaign for Social and Economic

... sector, higher taxes, cuts in services and higher prices. This IMF package, the coming budget and the three minibudgets last year on which the IMF loan depended, mean just one thing – more hardship for those who can least afford it. We are being told that we must pay for the greed of others, and a s ...
The Correlation Between Happiness and Inequality by Kiley Williams
The Correlation Between Happiness and Inequality by Kiley Williams

... was true for people who put more emphasis on religion in their life versus people who did not view religion as important. Gender, belonging to a voluntary organization, being a student or homemaker, being married, and being in a middle or high income level instead of low income level were all factor ...
Institutions and the Impact of Government Spending on Growth
Institutions and the Impact of Government Spending on Growth

... Countries are grouped by income level and also by government effectiveness for developing nations. Two different techniques are used to estimate the models. A particular focus of the analysis is how government effectiveness affects the growth impact of government spending in developing nations. Inst ...
Overview of Policy Options to Sustain Medicare for the Future
Overview of Policy Options to Sustain Medicare for the Future

... I’m going to read you some changes to the Medicare program that have been discussed as ways to reduce the federal budget deficit. Please tell me whether you would generally favor or oppose each one. Strongly favor ...
< 1 ... 41 42 43 44 45 46 47 48 49 ... 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