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1. The tax multiplier associated with a $10B reduction in taxes is
1. The tax multiplier associated with a $10B reduction in taxes is

... The tax multiplier associated with a $10B reduction in taxes is _______ the spending multiplier associated with a $10B increase in government spending because __________ a. the same quantity as / a tax change will either put more income into or out of savings b. smaller than / a tax change also invo ...
Module20
Module20

... recessionary gap and the future adverse consequences of an inflationary gap lead many economists to advocate active stabilization policy: using fiscal or monetary policy to offset demand shocks. There can be drawbacks, however, because such policies may contribute to a long-term rise in the budget d ...
Beyond boring: tough challenges ahead for central banks At a glance…
Beyond boring: tough challenges ahead for central banks At a glance…

... central banks also need to ‘earn’ their independence by demonstrating institutional capability. To analyse what makes a capable central bank in this new, more complex era of central banking, we’ve drawn lessons from the 60s, 70s and 80s, the period which earned central banks their independence to co ...
American Government 100 Part IV Patterson, pgs. 546
American Government 100 Part IV Patterson, pgs. 546

... 11. A tax that individuals pay on capital-investments, such as property and stocks: a) moneyinvestment tax, b) capital-gains tax, c) income-generated tax, d) capital-induced tax. 12. Under Bush, the capital-gains tax rate fell from 28% to: a) 23%, b) 19%, c) 15%, d) 8%. 13. When Bush took office in ...
Presentation
Presentation

...  The lack of emphasis on selective interventions to drive technological upgrading drove the economy further to a transition to low value added export manufacturing activities.  This has led to electronics and clothing firms increasingly their reliance on cheap little skilled foreign workers.  Fir ...
Question Paper - Advantage Learn
Question Paper - Advantage Learn

File - Year 11 Economics NIS
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... Inflation can be defined as an increase in the average levels of prices in an economy. Governments actually go to the shops and look at the prices of many products periodically. Over time, they can measure changes in average ...
Admission Examination in Economics
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... be increased in the ________-run. In the _________-run, however, the government can use expansionary _______________ and/or monetary policy to _____________ the output level above the potential GDP. Yet, such a policy will eventually only lead to ______________. 6. Give an example of a situation whe ...
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... policy change, how does the fall in consumer confidence affect government transfer payments in Meekland? Explain. Draw a correctly labeled graph of the loanable funds market in Meekland and show the effect of the change in government transfer payments you identified in part (d) on the real interest ...
Which statement reflects the role of prices in a market economy?
Which statement reflects the role of prices in a market economy?

... B economists make their calculations based on opportunity cost and marginal analysis C they see the value of life as relatively cheap D most economists believe that the above statement is a positive one and do agree with it in principle ...
IMVA Investment Viewpoint – April 2012
IMVA Investment Viewpoint – April 2012

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... jumped noticeably in recent months. However, the same thing cannot be said of business sentiment in general. For instance, National Federation of Independent Business surveys show the shares of members planning capital expenditures over the next three to six months or expecting higher inflation-adju ...
Macro Brew “Top-heavy was the ship as a dinnerless student with all
Macro Brew “Top-heavy was the ship as a dinnerless student with all

... “The biggest difference today versus prior postwealth-destroying, non-output producing debt). Most capital is still being War economic and market cycles is that stable invested as though we are experiencing (or soon will experience) a interest income from good credits no longer offers common post-Wa ...
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Macroeconomic crises and Macroeconomic Models Daniel Heymann July- August 2010

... Trends, cycles, crises • Crises in economies with very different financial systems: based on bank intermediation or capital markets, sophisticated and diversified or simple and narrow asset structure, domestic or foreign unit of denomination (although contract “dollarization” can be important sourc ...
exchange and authority: the mixed economy
exchange and authority: the mixed economy

... Political economy is the study of exchange but also the study of authority when exchange falls short. Its central focus, in other words, is on the and. This paper does not seek to trace back the etymology of political economy to the Greeks or to compare the kaleidoscopic meanings that have been assi ...
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1 Danger of Deflation and Stagflation by Gustav A. Horn Düsseldorf

... crisis in the Euro area. Then there will be no economic turn around. The dramatic fall of economic should fade, because stimulus packages elsewhere in the world especially in the US, the UK and Asia will have some positive impact on global trade. In addition to that aslo monetary policy will work t ...
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policy designed to change the money supply, credit availability, and

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... Result: equilibrium r falls The immediate effect is to displace the combination of (r, y) consistent with monetary equilibrium downwards • This corresponds to a rightwards (or downwards) shift in the LM curve • But will the fall in r lead to an increase in Aggregate Demand and therefore in y? • It w ...
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Snowball Effect: Weather Chills Economy Just When It Needs a
Snowball Effect: Weather Chills Economy Just When It Needs a

... and making do with what they have. 4. Give an example of a shifting demand curve and an example of a movement along a demand curve mentioned in the article. Demonstrate graphically. The winter of 2000-2001 is markedly different from the recent past. The previous two winters were among the warmest in ...
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... The unemployment rate is the ratio of the number of unemployed to the number in the labor force multiplied by 100. The nation’s labor force consists of people who are employed plus those who are out of work, but ...
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Macroeconomics

... decrease in GDP. Decreasing GDP for 6 months or more is a Recession. When prices drop to meet equilibrium again, the economy enters a recovery. Recession lasting long time and GDP decrease is severe, economy has entered Depression. ...
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... sustainable macro economic framework with low inflation (4.3% over 1997-2001 and 2% in 2002), stable exchange rates and acceptable level of foreign exchange reserves (over 3 months by end 2002), stable exchange rates and acceptable level of foreign exchange reserves (over 3 months by end 2002). Duri ...
The Eurozone crisis strikes back Global economy watch – April 2013
The Eurozone crisis strikes back Global economy watch – April 2013

... We expect the measures announced in the Budget to provide some modest support for the economy in 2014 and 2015, although they are not large enough to have a major impact on the growth outlook. ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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