• 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
Tracking The Macroeconomy
Tracking The Macroeconomy

... production—students may mistakenly believe that these three methods yield different values for GDP in a given period. Emphasize to students that this is not the case, because ultimately the value of all final goods and services produced must equal the value of income earned in the production of all ...
Document
Document

... (c) prices no longer indicate value or direct resource allocation. (d) the demand for real money balances increases significantly. ...
Document
Document

... a. output measured in current prices. b. output measured in constant prices. c. output measured in current average prices. d. output measured in terms of a base year output. ANSWER: b 11. Which of the following best describes business cycle activity? a. Business cycles are recurring fluctuations in ...
PPTX - Common Sense Economics
PPTX - Common Sense Economics

... government spending exceeds revenues, a deficit will occur.  When the government runs a deficit, it is financed by borrowing, the issuing of Treasury bonds.  The borrowing increases the national debt, the total outstanding bonds on which the government must pay interest.  In contrast, a budget su ...
DannyDorlingManchester_5_4_2011
DannyDorlingManchester_5_4_2011

... 9.2 Netherlands 9.1 France 8.1 Denmark 7.8 S. Korea 6.9 Germany 6.2 Sweden 4.5 Japan ...
Economics HL paper 2
Economics HL paper 2

... will reduce inflationary pressure (increase SRAS) • domestic producers will be forced to become more efficient as appreciation means that their products are less competitive in international markets and as imported goods become less expensive • the effect of the appreciation on the current account a ...
The Political Economy of Growth
The Political Economy of Growth

... theories, analyzes economic factors such as education, openness, infrastructure, and government spending to determine which are more important or less important for growth. The political-economy literature argues that economics alone cannot fully explain the enormous variance across countries in gro ...
The Implications of Macroprudential Policies for International Policy
The Implications of Macroprudential Policies for International Policy

Optimal fiscal and monetary policy action in a closed economy!
Optimal fiscal and monetary policy action in a closed economy!

... Third, in the case of debt consolidation, the choice of the …scal policy instrument matters for how quickly public debt should be brought down. For instance, in our baseline experiments, public debt reduction from 85%, which is its average value in the recent euro data, to the 60% target level, whi ...
State-local finances in recession and inflation: An economic analysis
State-local finances in recession and inflation: An economic analysis

... (A-69), issued in December 1978. This second volume, State-Local Finances in Recession and Inflation-An Economic Analysis, presents the economic and statistical analysis done by the Commission staff as background for the Commission's consideration. T h e staff analysis was directed towards two gener ...
Chapter 6
Chapter 6

... the multiplier and the multiplier effect • Apply the aggregate expenditures model to a discussion of the paradox of thrift • Examine the difference that may exist between the equilibrium level of output and that corresponding to the full-employment level of output, allowing discussion of the nature ...
Business Cycles Agenda What Is a Business Cycle? What Is a
Business Cycles Agenda What Is a Business Cycle? What Is a

... • Timing is unclassified: unemployment, the unemployment rate. ...
Principles of Economics, Case and Fair,9e
Principles of Economics, Case and Fair,9e

... Calculating GDP The Expenditure Approach The Income Approach Nominal versus Real GDP Calculating Real GDP Calculating the GDP Deflator The Problems of Fixed Weights Limitations of the GDP Concept GDP and Social Welfare The Underground Economy Gross National Income per Capita ...
here - Hans-Böckler
here - Hans-Böckler

... stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities. The ZLB represents the newest rigidity. Contrary to ZLB economics, not only does a laissez-faire monetary economy lack a mechanism for delivering the natural rate of interest ...
Vienna vs. Chicago on Monetary Issues
Vienna vs. Chicago on Monetary Issues

... “The key feature of this process [during which interest rates are low] is that it tends to raise the prices of sources of both producer and consumer services relative to the prices of the services themselves…. It therefore encourages the production of such sources and, at the same time, the direct ...
university of maiduguri - Unimaid, Centre for Distance Learning
university of maiduguri - Unimaid, Centre for Distance Learning

... generally in the working of the free market system through trade union legislation and or minimum wage legislation. Those who are not prepared to work at the existing wage rate are not unemployed in the pigouvian sense because they are voluntarily unemployed. The climax of this contention is that wi ...
Slide 1
Slide 1

... this aspect between fiscal andon monetary and of the themarket government-controlled economy is especially money ultimately for a “comprehensive vulnerable supply andtothe the overall manipulation price level. of socialization of investment.” interest rates by the central bank. ...
Student Study Guide
Student Study Guide

... finance it or that more money be borrowed to finance existing debt. Often this leads to monetizing the debt—which means that the Fed stands ready to buy the new bonds—which has monetary policy impacts that might not always be desirable. 22. This is not true. As of 2010, foreigners held about one-th ...
subject economics - Kendriya Vidyalaya CRPF Durgapur, West Bengal
subject economics - Kendriya Vidyalaya CRPF Durgapur, West Bengal

... Ans: - Demand - The quantity of a commodity which a consumer wish to purchase at given price and given period of time is called demand. Determinants of demand- The main determinants of demand for a commodity are as followsi) Price of the commodity- When the price of a commodity increases the demand ...
Optimal fiscal and monetary policy action in a closed economy!
Optimal fiscal and monetary policy action in a closed economy!

... should be slower if there are labor market rigidities since, in the presence of such rigidities, …scal policy should be mainly concerned about the real economy. On the other hand, if we use labor taxes, which are a particularly distorting instrument at any time, the pace of public debt reduction sho ...
Nicholas C Garganas: Macroeconomic management
Nicholas C Garganas: Macroeconomic management

... circumstances, a response from monetary policy would be inappropriate. The impact of the shock may well have dissipated by the time that the impact of the monetary policy actions is felt. In other words, the long lags associated with monetary policy make it unsuited for fine-tuning the economy to sm ...
Saving and the National Economy
Saving and the National Economy

... beginning, that might seem to imply that the amount they consumed during that week could be sustained indefinitely, at least if their income does not change. This notion was given more formal exposition by Weitzman (1976). He showed that , in a closed economy with income defined by net domestic prod ...
Schelkle , Waltraud (2002) 'Disciplining Device or Insurance Arrangement? Two Approaches to the Political Economy of EMU Policy Coordination', EI WP 2002-01 (December)
Schelkle , Waltraud (2002) 'Disciplining Device or Insurance Arrangement? Two Approaches to the Political Economy of EMU Policy Coordination', EI WP 2002-01 (December)

... the central bank’s point of view, it would be best if the private sector, say wage bargainers, would believe in a zero inflation policy and set nominal wages in line with those expectations. A slight increase in unexpected inflation would then lead to more employment which the central bank prefers. ...
Chapter 19. The Goods Market in an Open Economy
Chapter 19. The Goods Market in an Open Economy

... The trade deficit and the smaller multiplier have the same cause: An increase in demand now falls not only on domestic goods, but also on foreign goods. So, when income increases, the effect on the demand for domestic goods is smaller than it would be in a closed economy, leading to a smaller multip ...
Welfare Effects of Demand Management Policies: Impact Multipliers
Welfare Effects of Demand Management Policies: Impact Multipliers

... converted into domestic currency at a given exchange rate. In equilibrium, the model determines domestic output and factor prices so as to clear output and factor markets. For any given exogenous shock we can estimate impact multipliers by solving the model under each of three different factor suppl ...
< 1 ... 66 67 68 69 70 71 72 73 74 ... 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