• 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
20.3 The Aggregate Demand Curve
20.3 The Aggregate Demand Curve

... network environment that prevents downloading or reproducing the copyrighted material. Otherwise, no part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including, but not limited to, photocopying, recording, tap ...
Chapter 30
Chapter 30

... Now substitute MPC  Y for C in the equation at the top of the screen Y = MPC  Y + I © 2013 Pearson ...
Demand Led Recession
Demand Led Recession

... decline in demand for economy. This creates a surplus of their good (micro pushes prices higher goods. Companies event). Companies and interest rates respond by cutting respond by cutting ...
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther

... The design of optimal policy responses to adverse capital account shocks during periods of global capital market turmoil (i.e., skyrocketing bond spreads and a sharp retrenchment in capital inflows or Sudden Stop) has been the source of a lively debate, particularly at the time of the Tequila, the A ...
NBER WORKING PAPER SERIES Marco Battaglini Stephen Coate
NBER WORKING PAPER SERIES Marco Battaglini Stephen Coate

... primary loyalty to the districts they represent as opposed to a national political party. The theory yields positive predictions concerning the dynamic evolution of public debt, taxation, and the allocation of public revenues between national public goods and pork-barrel spending. It also provides p ...
International Doctorate in Economic Analysis Departament d’Economia i d’Història Econòmica
International Doctorate in Economic Analysis Departament d’Economia i d’Història Econòmica

... stimulating private activity during times of financial stress. This debate is partly based on the theoretical intuition that, during periods of adverse financial conditions, private agents are more likely to become liquidity constrained thus finding it hard to optimally smoothen their consumption al ...
NBER WORKING PAPER SERIES MONEY DEMAND Peter N. Ireland
NBER WORKING PAPER SERIES MONEY DEMAND Peter N. Ireland

... Post-1980 U.S. data trace out a stable long-run money demand relationship of Cagan's semi-log form between the M1-income ratio and the nominal interest rate, with an interest semi-elasticity below 2. Integrating under this money demand curve yields estimates of the welfare costs of modest departures ...
- Economic Growth and Distribution:On the
- Economic Growth and Distribution:On the

... represent an engine of growth, so that there is no necessary contradiction between greater social equity and growth.5 Welfare State expansion, although favourable to stable economic growth may however encounter an obstacle in the political acceptance of distribution changes – for instance higher tax ...
An Analysis of the Fiscal Stance of the New Zealand Government
An Analysis of the Fiscal Stance of the New Zealand Government

... to the rest of the economy can be modelled. In doing so it is possible to determine if the inflation adjusted structural budget imbalance has a greater impact on short-term business cycles than the nominal structural imbalance. Movements in real economic activity in New Zealand can be positively rel ...
the PDF File
the PDF File

... Hoarding  of  essential  goods,  irregular  agricultural  supply,  rise  in  administered  prices  and  inadequate  growth  of  industrial  production  are  some  of  the  supply  factors  which  cause  inflation.  ...
6 Street Bridge, Los Angeles th
6 Street Bridge, Los Angeles th

... The Federal Reserve Board did not make any monetary policy changes that affected interest rates in fiscal year 2003-04. The federal funds rate was 1.0 percent for the entire fiscal year, the lowest since recordkeeping began in 1955. Mortgage rates and other interest rates, both related to the federa ...
Fed - Madison County Schools
Fed - Madison County Schools

The Economics of Small Open Economies
The Economics of Small Open Economies

... the demand line is flat at 3 percent does not necessarily mean that it will be at that level next month. In fact, demand will most likely change over time. In small open economies, these fluctuations are, to a large extent, independent of the country’s economic fundamentals, such as productivity or ...
CHAPTER 24
CHAPTER 24

... The Reality Principle What matters to people is the real value or purchasing power of money or income, not its face value ...
Mid-Year Economic and Fiscal Outlook 2016-17
Mid-Year Economic and Fiscal Outlook 2016-17

File
File

... Purchasing goods or services from foreign countries Total import = Mgoods + Mservices ...
A Chronology Of Postwar US Federal Income Tax Policy
A Chronology Of Postwar US Federal Income Tax Policy

... addition, dynamic scoring practiced by government budgeting agencies tends to rely on models that make extreme information assumptions.2 This chronology shows tax policy changes were preceded by extensive legislative delay, suggesting that people acquire information about future tax policy changes.3 ...
Econ202 Sp14 answers 1 2 3 4 5 6 to final exam group C
Econ202 Sp14 answers 1 2 3 4 5 6 to final exam group C

... (a) (7 points) Suppose that we graph the LM* curve for given values of PD and PF (instead of the usual P). Is this LM* curve still vertical? Explain. (b) Suppose that the government increases its purchases of goods and services. What is the effect of this on the IS* and LM* curves, and on the equili ...
MODELING GOVERNMENT EXTERNAL DEBT
MODELING GOVERNMENT EXTERNAL DEBT

... revenue will decline (Tasrif, 1985). Indonesia’s oil resources will be depleted by 2010. After 2010 Indonesia possibly would be no longer an oil producing country. In the mean while, the uncertainty in world oil prices influences the oil revenue as a source of revenue for Indonesia, while taxes reve ...
NUMERICAL FISCAL RULES FOR FISCAL DISCIPLINE Mihaela
NUMERICAL FISCAL RULES FOR FISCAL DISCIPLINE Mihaela

... of the Six Pack in 2011. This directive recognized the importance of the role that national policy-makers have in countries' ability to comply with the European requirements under the SGP and sets certain minimum criteria for national budgetary frameworks that countries should comply with. These cri ...
Matthew 0. Shapiro Working Paper No. 2146
Matthew 0. Shapiro Working Paper No. 2146

... prices. In order to accommodate such shocks at full employment, the real wage must fall. If nominal wages are sticky, some of this decline will be accomplished through an increase in the general price level. As costs increase due to increases in crude materials prices or declines in productivity, fi ...
2301 Exam 1, Spring 2003.doc
2301 Exam 1, Spring 2003.doc

... 1. The framework advanced by the authors of THE STRUGGLE FOR DEMOCRACY to aid our understanding of American politics suggests that every political actor, institution, and process can be located in one of four categories. Which of the following is NOT one of those sectors? a. government b. system c. ...
Chapter 6
Chapter 6

... International substitution effect A rise in the price level, other things remaining the same, increases the price of domestic goods relative to foreign goods, so imports increase and exports decrease, which decreases the quantity of real GDP demanded. Similarly, a fall in the price level, other thin ...
Fiscal Spillovers and Monetary Policy Transmission in the Euro Area
Fiscal Spillovers and Monetary Policy Transmission in the Euro Area

... and reacts contemporaneously and negatively to deviations of the output gap. This can be thought of as an automatic stabilizer framework, as government expenditure increases to boost economic output if GDP is below its steady state. This fiscal rule is ad hoc and far from being an optimal rule as on ...
Factors Influencing Defense Expenditures PHD Thesis
Factors Influencing Defense Expenditures PHD Thesis

... of alternative measures, such as defense spending per capita, defense spending as a percentage of the government’s total budget, the rate or amount of change of defense spending. Naturally, the impact of economic, political, and other variables on defense spending (even the ranking of the countries ...
< 1 ... 93 94 95 96 97 98 99 100 101 ... 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