• 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
Financial, Fiscal and Real Economic
Financial, Fiscal and Real Economic

... Overall, the SYMBOL model could be a useful tool to complement the EC’s traditional debt sustainability assessment with a focus on a specific risk area, i.e. the financial sector. This seems all the more important as risks stemming from the financial sector were not accounted for in EU fiscal susta ...
13.1 aggregate supply
13.1 aggregate supply

... changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each price level. So an increase in the money prices of other resources decreases aggregate supply ...
Monetary Policy - Federal Reserve Bank of Philadelphia
Monetary Policy - Federal Reserve Bank of Philadelphia

... it borrows (by selling Treasury bills, notes, and bonds) to pay its expenses. When it has a surplus, it repays previously issued debt. Changes in taxes or government spending enacted by Congress (referred to as fiscal policy) will alter the size of the surplus or deficit and can also affect the leve ...
Economics
Economics

... Economics is the study of how society provides for itself by making the most efficient use of scarce resources so that both private and social welfare may be improved. The subject, therefore, covers the study of individuals, households, firms, government and international economic institutions as th ...
Lecture 12
Lecture 12

... If wages fully adjust, output will be back to Y0. ...
GwartPPT007 - Crawfordsworld
GwartPPT007 - Crawfordsworld

... Data on both money GDP and price changes are essential for meaningful output comparisons between two time periods. ...
Class Conflict and the Cambridge Theory of
Class Conflict and the Cambridge Theory of

Short-run aggregate supply
Short-run aggregate supply

... • Consequently, only changes in real variables influence other real variables ...
Note on Macroeconomic Data
Note on Macroeconomic Data

... • Gross Domestic Product (GDP) measures both total income and total expenditure on the economy’s output of goods & services. • Nominal GDP values output at current prices; real GDP values output at constant prices. Changes in output affect both measures, but changes in prices only affect nominal GDP ...
Mauritius - COMESA Monetary Institute (CMI)
Mauritius - COMESA Monetary Institute (CMI)

... commands credibility over the ability to repay its debts, which in turn depends on the level of existing debt, proposed size of fiscal deficit, debt servicing conditions, size of the economy and the rate at which it is growing. The government can thus borrow as long as there is a demand for its bond ...
Chapter 9: The Government and Fiscal Policy
Chapter 9: The Government and Fiscal Policy

... Y ↓ ⇒ T ↓ ⇒ More deficit(cyclical deficit) andY ↑. This is equivalent to automatically implementing an expansionary fiscal policy to alleviate the pain of recession, but the government does not have to change any laws for this to happen. If economy is in a boom, Y ↑ ⇒ T ↑ ⇒ Less deficit andY ↓. This ...
Mankiw 5/e Chapter 2: The Data of Macroeconomics
Mankiw 5/e Chapter 2: The Data of Macroeconomics

... We have now seen that GDP measures  total income  total output  total expenditure  the sum of value-added at all stages in the production of final goods ...
Misunderstanding the Great Depression, making the next one worse
Misunderstanding the Great Depression, making the next one worse

... – Increase in debt zero – Total spending on all markets $1.1 trillion – $150 billion fall in demand because debt stabilises • Markets must “take a hit” from fall in turnover • Similar but smaller effect even if debt grows 10% – No growth in nominal demand—rise in unemployment ...
Mankiw 5/e Chapter 14: Stabilization Policy
Mankiw 5/e Chapter 14: Stabilization Policy

... An example of the Lucas Critique  Prediction (based on past experience): ...
View/Open
View/Open

... exogenous variables. Second, the counterfactual simulation analysis tests how the interactions under alternative assumptions between foreign direct investment (FDI) and aid flows determine the effectiveness of globalization. The results show that aid increases government investment while FDI increas ...
Chapter Problems Frank and Bernanke Chapters 17
Chapter Problems Frank and Bernanke Chapters 17

... Net exports are exports (75) minus imports (50), or 25. GDP is the sum of the four components: 600 + 225 + 200 + 25 = 1050. 6. For the year 2000 Nominal GDP = (100 x $5) + (300 x $20) + (100 x $20)= $8500 Real GDP (using prices from 2000) = (100 x $5) + (300 x $20) + (100 x $20) = $8500. Notice that ...
chapter summary
chapter summary

... policies are mostly anticipated by the public, and therefore have less effect than unexpected policies. The passive approach suggests that the government should follow clear and predictable policies and avoid discretionary intervention to stimulate or dampen aggregate demand over the business cycle. ...
Exercises to use with TUG-CGE.gms
Exercises to use with TUG-CGE.gms

... labor), SkLab (skilled labor), Capital and NatRes (natural resources). The factor account row shows the income received by factors from the activities that employ them. This factor income is sometimes called “value added” because it is the value of the factors’ services which are combined with inter ...
Why Has US Policy Uncertainty Risen Since 1960?
Why Has US Policy Uncertainty Risen Since 1960?

... converging on preferences of the median voter, the economic policy positions of the parties’ most prominent figures have diverged sharply. At the same time, partisan control of Congress has switched frequently, and presidential elections have been competitive. Thus, national elections often produce ...
Chapter 12
Chapter 12

... 4. The aggregate demand curve still shifts right. Due to the shape of the AS curve, however, now both the price level and level of real GDP increase, from P to P' and from Y to Y'. The last three questions reveal the crucial role played by the shape of the aggregate supply curve: Notice how the res ...
CHAPTER 11 Self Study Questions
CHAPTER 11 Self Study Questions

... D) growth of potential GDP. 2) Which of the following variables does NOT directly influence aggregate production? A) the state of technology B) the quantity of capital C) the quantity demanded D) the quantity of labor 3) The quantity of real GDP supplied ____ the amount of ____. A) increases as; lab ...
II. IMF Macroeconomic Policy Advice in the Financial Crisis
II. IMF Macroeconomic Policy Advice in the Financial Crisis

... began to reassess its views on fiscal policy and subsequently called for a more moderate pace of fiscal consolidation if feasible. The thrust of IMF macroeconomic policy advice to advanced economies since 2010—of fiscal consolidation coupled with monetary expansion—appears at odds with longstanding ...
Money and Seigniorage
Money and Seigniorage

... occasions a price level jump and a jump in real money demand impacts seigniorage revenue. Suppose that the economy always jumps to its steady state in response to an unexpected change in in ation. Then, according to eq. (1)|which is appropriate because there will be discrete changes in P and in m at ...
Chapter 8 PowerPoint Presentation
Chapter 8 PowerPoint Presentation

... The Ranges of AS • Keynesian Range – Large amounts of unemployment make it so that increases in aggregate demand have no affect on wages or prices. ...
A European Economic Recovery Plan
A European Economic Recovery Plan

... area in coming months. Confidence data have fallen almost uninterruptedly since May 2007 and are now well below their long-term averages. In December, the Commission’s Economic Sentiment Indicator declined to its lowest level in both the EU and the euro area since the current series was launched in ...
< 1 ... 84 85 86 87 88 89 90 91 92 ... 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