Chapter 10: Economic Performance
... C. contraction (recession) D. trough Explain each of the following influences on the Business Cycle: A. business investment B. money and credit C. Public expectations D. External Factors Define each of the 3 economic indicators used to determine what phase the economy is in: A. leading indicators B. ...
... C. contraction (recession) D. trough Explain each of the following influences on the Business Cycle: A. business investment B. money and credit C. Public expectations D. External Factors Define each of the 3 economic indicators used to determine what phase the economy is in: A. leading indicators B. ...
Macroeconomic policy
... also improve the supply side eg if tax cuts to stimulate AD also encourage the unemployed to take jobs. Government spending on infrastructure also reduces firms costs eg transport. Give examples of how fiscal and supply side polices can conflict. The crowding out theory argues that government borrow ...
... also improve the supply side eg if tax cuts to stimulate AD also encourage the unemployed to take jobs. Government spending on infrastructure also reduces firms costs eg transport. Give examples of how fiscal and supply side polices can conflict. The crowding out theory argues that government borrow ...
Monetary Policy - Diocesan College
... rate of interest - rate of inflation. For example... • A saver receives interest of 6% on his savings • Inflation (general rise in prices) is 3% per year • The real rate of return on these savings is only _____%. ...
... rate of interest - rate of inflation. For example... • A saver receives interest of 6% on his savings • Inflation (general rise in prices) is 3% per year • The real rate of return on these savings is only _____%. ...
lecture notes
... 1. Some economists oppose the use of fiscal policy, believing that monetary policy is more effective or that the economy is sufficiently self-correcting. 2. Most economists support the use of fiscal policy to help “push the economy” in a desired direction, and using monetary policy more for “fine tu ...
... 1. Some economists oppose the use of fiscal policy, believing that monetary policy is more effective or that the economy is sufficiently self-correcting. 2. Most economists support the use of fiscal policy to help “push the economy” in a desired direction, and using monetary policy more for “fine tu ...
Policy Note 1998/6 What to Do with the Surplus: Fiscal Policy and
... surplus"--has emerged. Some policymakers favor tax cuts, others prefer debt reduction, and the president has advocated the rescue of Social Security. We argue that the budget surplus will be short-lived as the coming worldwide recession slows growth in the United States and lowers tax revenues. In o ...
... surplus"--has emerged. Some policymakers favor tax cuts, others prefer debt reduction, and the president has advocated the rescue of Social Security. We argue that the budget surplus will be short-lived as the coming worldwide recession slows growth in the United States and lowers tax revenues. In o ...
(I) Planned investment spending
... consumption spending changes. • What might cause autonomous C to change? Changes in expected future disposable income - say it rises: might save less now or borrow against extra future income -- so current C rises! - say it falls: might save more now (or borrow less) in order to have more funds in ...
... consumption spending changes. • What might cause autonomous C to change? Changes in expected future disposable income - say it rises: might save less now or borrow against extra future income -- so current C rises! - say it falls: might save more now (or borrow less) in order to have more funds in ...
File
... fiscal policy to reduce the level of inflation. The net export effect suggests that: A) private investment would decrease, thus decreasing aggregate demand and partially reinforcing the fiscal policy. B) private investment would decrease, thus increasing aggregate demand and partially offsetting the ...
... fiscal policy to reduce the level of inflation. The net export effect suggests that: A) private investment would decrease, thus decreasing aggregate demand and partially reinforcing the fiscal policy. B) private investment would decrease, thus increasing aggregate demand and partially offsetting the ...
Chapter 8 - Aggregate Demand and the powerful consumer
... • C - Consumer expenditure / consumption – Total amount – Spent by consumers – Newly produced goods & services • Exclude: purchases of new homes – Investment goods ...
... • C - Consumer expenditure / consumption – Total amount – Spent by consumers – Newly produced goods & services • Exclude: purchases of new homes – Investment goods ...
Section2
... C + I + G + (X-M) = C + S + (T-TR) Implications: • A fiscal deficit must be financed by lower investment, higher private savings, or increased foreign borrowing. • An increase in savings will lead to increased investment, an increased fiscal deficit or an increase in net exports. • A decline in net ...
... C + I + G + (X-M) = C + S + (T-TR) Implications: • A fiscal deficit must be financed by lower investment, higher private savings, or increased foreign borrowing. • An increase in savings will lead to increased investment, an increased fiscal deficit or an increase in net exports. • A decline in net ...
6. Medium-Term Expenditure Framework: Lessons
... Overall, fiscal policy in Korea has carried out its roles rather successfully: • Resource allocation: The emphasis was placed on promoting the economic growth with large spending on education, infrastructure, and other public goods. • Income distribution: After the crisis, spending on social protect ...
... Overall, fiscal policy in Korea has carried out its roles rather successfully: • Resource allocation: The emphasis was placed on promoting the economic growth with large spending on education, infrastructure, and other public goods. • Income distribution: After the crisis, spending on social protect ...
Practice Problems Ch. 12 Aggregate Expenditure
... 25. Refer to Figure 1-1. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $400 billion. If the MPC is 0.75, then what is the distance between N and L or by how much did government spending change? A) $10 billi ...
... 25. Refer to Figure 1-1. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $400 billion. If the MPC is 0.75, then what is the distance between N and L or by how much did government spending change? A) $10 billi ...
Economics - NCmish.com!!!
... The New York Times supports Mr. Rugh’s observation reporting, “Currency strategists worry that the deficit must be covered by money from abroad, and that if this flow slows down, interest rates may go higher and the dollar lower.”2 Perhaps one of the main issues that should be discussed between this ...
... The New York Times supports Mr. Rugh’s observation reporting, “Currency strategists worry that the deficit must be covered by money from abroad, and that if this flow slows down, interest rates may go higher and the dollar lower.”2 Perhaps one of the main issues that should be discussed between this ...
Why is France having such Trouble with Its Economy?
... (2)Weak Consumer and Business Confidence ...
... (2)Weak Consumer and Business Confidence ...
Recovery and boom in the business cycle
... in the market is high. This leads to high levels of demand and consumer spending. Businesses increase their output and may be working at full capacity. It is during this phase that existing businesses tend to increase their spending on new capital. Many new firms also start up. Due to the level of b ...
... in the market is high. This leads to high levels of demand and consumer spending. Businesses increase their output and may be working at full capacity. It is during this phase that existing businesses tend to increase their spending on new capital. Many new firms also start up. Due to the level of b ...
PS#2 - USNA
... 2. What does GDP measure? What are the three ways to calculate GDP? Why conceptually should the three methods give you approximately the same number? Why does our government bother to calculate GDP three different ways? 3. Suppose the government deficit is 10, interest on the government debt is 5, t ...
... 2. What does GDP measure? What are the three ways to calculate GDP? Why conceptually should the three methods give you approximately the same number? Why does our government bother to calculate GDP three different ways? 3. Suppose the government deficit is 10, interest on the government debt is 5, t ...
Froyen Policy
... government transfer payments that occur without any further intervention or decision making when the level of income changes. Because tax receipts rise and fall with income, the tax system is an automatic stabilizer. ...
... government transfer payments that occur without any further intervention or decision making when the level of income changes. Because tax receipts rise and fall with income, the tax system is an automatic stabilizer. ...
What`s public finance (PF) for, anyway? Presented at the
... HRBA to revenue generation • Common but differentiated responsibilities for financing development • Progressive taxation • HR perversion: people should keep their money since they know better than government how to spend it (eg. Bush & the likes) ...
... HRBA to revenue generation • Common but differentiated responsibilities for financing development • Progressive taxation • HR perversion: people should keep their money since they know better than government how to spend it (eg. Bush & the likes) ...
Unit 6 - Fiscal Policy
... Fiscal Policy and Keynes Keynes listed two types of fiscal policy: 1. Discretionary spending (needs government approval). Examples include bills passed to change spending on roads, highways, stadiums, or taxation in order to stimulate the economy. 2. Automatic stabilizers (already part of existing p ...
... Fiscal Policy and Keynes Keynes listed two types of fiscal policy: 1. Discretionary spending (needs government approval). Examples include bills passed to change spending on roads, highways, stadiums, or taxation in order to stimulate the economy. 2. Automatic stabilizers (already part of existing p ...
Keynesian Model & Multipliers
... MPS, MPC, & Multipliers • Ex. Assume the Japanese spend 4/5 of their disposable income. Furthermore, assume that the Japanese government increases its spending by ¥50 trillion and in order to maintain a balanced budget simultaneously increases taxes by ¥50 trillion. Calculate the effect the ¥50 tri ...
... MPS, MPC, & Multipliers • Ex. Assume the Japanese spend 4/5 of their disposable income. Furthermore, assume that the Japanese government increases its spending by ¥50 trillion and in order to maintain a balanced budget simultaneously increases taxes by ¥50 trillion. Calculate the effect the ¥50 tri ...
MGMT 510 Week 2
... behaviour of the national income (GDP), unemployment rate, interest rates, trade balance, private consumption and savings, price level investment, budget balance of government and other variables particularly for economies which are facing unemployment above the natural rate of unemployment and thei ...
... behaviour of the national income (GDP), unemployment rate, interest rates, trade balance, private consumption and savings, price level investment, budget balance of government and other variables particularly for economies which are facing unemployment above the natural rate of unemployment and thei ...
Zita Chan
... for 2011-12 by 75 per cent in the coming fiscal year, which is at most $12,000. This police will benefits around 1.5 million taxpayers and cost government $8.9 billion. Assuming there is a full employment in Hong Kong originally. The reduction in salaries tax, which is a direct tax, will reduce the ...
... for 2011-12 by 75 per cent in the coming fiscal year, which is at most $12,000. This police will benefits around 1.5 million taxpayers and cost government $8.9 billion. Assuming there is a full employment in Hong Kong originally. The reduction in salaries tax, which is a direct tax, will reduce the ...