• 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
Aggregate Demand File
Aggregate Demand File

... from 7% to 4% will decrease the incentive to save and decrease the cost of borrowing. This is likely to result in an increase in the level of investment from I1 to I2. An increase in the interest rate will have the opposite ...
Module20
Module20

... on their investment spending. This increases the incentive for investment spending. Investment tax credits are often temporary, applying only to investment spending within a specific period. Like department store sales that encourage shoppers to spend a lot while the sale is on, temporary investment ...
Slide 1
Slide 1

... NB: if economy at full employment, higher G raises P  real money supply falls  interest rate goes up  I falls ...
Economics considerations for new and existing businesses
Economics considerations for new and existing businesses

... business especially if it is a fixed rate contract. Costs could dramatically increase over the contract term  Pushes costs up , particularly buying new machinery  If UK inflation is rising faster than other countries business will find it difficult to compete. ...
PD - Mosler Economics
PD - Mosler Economics

... big government deficits when, during a recession with significant unemployment, the federal government is the only spender that can take the responsibility to sufficiently increase the market demand for the products of our industries and thereby maintain a profitable entrepreneurial system. For gove ...
American Government 100 Part IV Patterson, pgs. 546
American Government 100 Part IV Patterson, pgs. 546

... 6. Democratic policy-makers have pursued tax policies that favor working-class and lowermiddle-class Americans unlike Republicans whose tax policies favor the rich and business firms. True or False 7. President Bush was correct when he argued that his tax cuts would boost economic activity to such a ...
The European Recovery Economic Plan and Quality of Public
The European Recovery Economic Plan and Quality of Public

... interest rates and have argued that reductions are possible additional. European Central Bank has already proved important in stabilizing the markets by lending banks and contribute to liquidity. At the root of problems in the real economy is financial market instability. A reliable and efficient fi ...
Delivering the Deficit Reduction: Rising Phoenix or a Dead
Delivering the Deficit Reduction: Rising Phoenix or a Dead

... heath service had been used to  20% ‘efficiency’ savings  Little evidence from Gershon etc about realism of such efficiency efforts  Also, major reform of administration ...
2012
2012

... Fiscal Austerity Versus Economic Growth Question: Should government cut spending and raise taxes in the short run to reduce our deficit-to-GDP ratio or should we wait and allow economic growth to reduce the ratio in the long run. Short-term fiscal austerity can be self-defeating: ...
The economic Cycle - Business Studies A Level for WJEC
The economic Cycle - Business Studies A Level for WJEC

... Consumer confidence grows – leading to increased borrowing and spending Firms increase output – build up stock levels Spare capacity used, then Investment occurs Unemployment falls – it make take more than a year of recovery for large changes in unemployment levels ...
Last day to sign up for AP Exam
Last day to sign up for AP Exam

... power of money. This decreases the quantity of expenditures • Lower price levels increase purchasing power and increase expenditures Example: • If the price level doubles, people are going to buy less stuff because they have less purchasing power. • So…price level goes up, GDP demanded goes down. ...
Additions to study guide on material since the second exam:
Additions to study guide on material since the second exam:

grt dep begins2017
grt dep begins2017

... legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body - the producers and consumers themselves.” ...
AP_Macro_Fiscal_Policy_Teacher
AP_Macro_Fiscal_Policy_Teacher

... Foreign holdings of Treasury securities have increased by more than $1.049 trillion since 2000. ...
Chapter 1
Chapter 1

... Expanded model of income determination ...
Ch16-- Macroeconomic Viewpoints
Ch16-- Macroeconomic Viewpoints

... – Changes in real GDP result from unexpected changes in the prices level. ...
14.02 Principles of Macroeconomics Problem Set 4 Fall 2004
14.02 Principles of Macroeconomics Problem Set 4 Fall 2004

... 5. The Keynesian government is up for reelection soon, and so it wants to achieve the natural level of output. (We are still in the short run.) Propose two different policy options that would do the job. For each policy option, draw the IS-LM and the AS-AD diagrams, and show how the first translates ...
Monetary and Fiscal Policy
Monetary and Fiscal Policy

Jang_Group_articles_Pak_Eco_n_the_impact_of_flood
Jang_Group_articles_Pak_Eco_n_the_impact_of_flood

... has concluded that the economic outlook has deteriorated sharply. The agricultural sector has been hit hard and the loss of output would reduce GDP by over 2 percent. These output losses combined with disruption in supply chains arising from damage to infrastructure have pushed up the prices of food ...
world peace and economic prosperity
world peace and economic prosperity

... Nor did the editorial give due consideration to the build-up of very serious twin deficits on both external trade and internal budgetary accounts, which posed some very awkward future adjustments for the United States economy. Yes, an economy can have some very short-run improvements in overall acti ...
chapter 13(29)
chapter 13(29)

... Ask students the following questions: 1. What are the three options available when discretionary fiscal policy is considered to combat a recession? (Answer: an increase in government spending, tax cuts, or transfer payments). 2. What are the benefits and drawbacks of each of the three options? (Answ ...
12 PRINCIPLES OF ECONOMICS : A. Principles That Underlie
12 PRINCIPLES OF ECONOMICS : A. Principles That Underlie

... An economy is efficient if all opportunities to make some people better off without making other people worse off are taken. Resources should be used as efficiently as possible to achieve society’s goals. But efficiency is not the sole way to evaluate an economy: equity, or fairness, is also desirab ...
Midterm 2 - Winter 2016
Midterm 2 - Winter 2016

Objectives - Heard County High School
Objectives - Heard County High School

... Subject: Economics ...
DEFICIT
DEFICIT

... Before presenting this analysis and discussing its implications, it is useful to distinguish this source of a negative multiplier from two quite different reasons that have been adduced as possible causes of a "perverse" ...
< 1 ... 488 489 490 491 492 493 494 495 496 ... 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