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Insert C, Chapter 24
Insert C, Chapter 24

... the average and say total production has increased by 55 percent. Since oranges and computers have different values, the quantities of each commodity are multiplied by their values or prices. Adding together all the results of the price times quantity figures leads to the aggregate figure showing th ...
CHAP14
CHAP14

... An increase in the money growth rate will reduce unemployment. ...
Chapter 24 Measuring Domestic Output and National
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Fiscal Sentiment and the Weak Recovery from the Great Recession
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... path of private gross domestic investment trace rather closely the actual trajectory of that variable during the Great Recession and its aftermath. This particular incarnation of the …scal sentiment hypothesis can also account for between one-third and one-half of the decline in labor input relative ...
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sample test two

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This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research

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... Whenever business activity creates output, it generates jobs and income for someone. GDP, then, is like a two-sided coin, where one side represents output and the other side an equal amount of income. If we want to see how much output is produced, we look at one side of the coin. If we want to see h ...
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Study Guide for Williamson Intermediate Macroeconomics, First

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... consumption patterns: they do not increase their spending too much when times are good and do not cut back too much when times are bad. The reason for this behavior can perhaps be best illustrated by the simple microeconomic experiment depicted in Figure 3. This diagram illustrates the choices open ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... all consumers and the government do not have identical homothetic preference functions, then any shifting of income among these groups would also have repercussions for relative prices since the composition of aggregate demand would change. The personal incidence of a differential tax depends on the ...
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... how this dynamic incidence is to be valued. When the adjustment path is modeled in such models (as in Boadway and Bernheim) the results are sensitive to the discount rate, a parameter of intertemporal preferences which, in their models, does not affect savings behavior. In contrast, we examine dynam ...
called for reducing NIH funding to 2008 levels
called for reducing NIH funding to 2008 levels

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... So Milton Friedman came on and explained his theory of the causes of inflation. The first step to understand Friedman’s theory, is to accept that inflation is always a monetary phenomenon. It’s always a result of too much money, of more rapid increase in the quantity of money than in an output. More ...
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CHAPTER OVERVIEW

... 2. Since interest must be paid out of government revenues, a large debt and high interest can increase tax burden and may decrease incentives to work, save, and invest for taxpayers. 3. A higher proportion of the debt is owed to foreigners (about 23 percent) than in the past, and this can increase t ...
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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.
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