13.1 aggregate supply
... a large injection of spending by the U.S. government, but this move was not enough to stop aggregate demand from decreasing. ...
... a large injection of spending by the U.S. government, but this move was not enough to stop aggregate demand from decreasing. ...
How does an increase in government purchases affect the economy?
... and the CarterReagan build up. They date these and King (1992) and Farmer (1993), the increase in events at third quarter 1950, first quarter 1965, and aggregate output leads to an upward shift in the marfirst quarter 1980.9 ginal product of labor schedule. This in turn shifts As background to our ...
... and the CarterReagan build up. They date these and King (1992) and Farmer (1993), the increase in events at third quarter 1950, first quarter 1965, and aggregate output leads to an upward shift in the marfirst quarter 1980.9 ginal product of labor schedule. This in turn shifts As background to our ...
A survey of the effects of discretionary fiscal policy*
... Until the early eighties fiscal policy was widely regarded as a useful tool for economic stabilization. In response to the oil shocks of the seventies many governments relied on monetary and fiscal expansion. However, active fiscal policies did not prevent the widespread increases in unemployment, w ...
... Until the early eighties fiscal policy was widely regarded as a useful tool for economic stabilization. In response to the oil shocks of the seventies many governments relied on monetary and fiscal expansion. However, active fiscal policies did not prevent the widespread increases in unemployment, w ...
Aggregate Expenditures
... • Keynesian analysis suggest that govern can use taxes to stimulate the economy. • However people might save some of their higher after tax income rather than spend it. The tax multiplier, which is the expansionary, or contractionary effect of a tax cut, or increase would be less than the multiplier ...
... • Keynesian analysis suggest that govern can use taxes to stimulate the economy. • However people might save some of their higher after tax income rather than spend it. The tax multiplier, which is the expansionary, or contractionary effect of a tax cut, or increase would be less than the multiplier ...
Questions for Review
... There are two possible reasons for total spending to rise from one year to the next. ...
... There are two possible reasons for total spending to rise from one year to the next. ...
austria
... and hikes in consumption (unifying the VAT rate at 20 percent) and capital taxes (including property) that are very low by international standards; (iii) fiscal federalism should be reformed by strengthening the link between revenue and expenditure at the province level, including through meaningful ...
... and hikes in consumption (unifying the VAT rate at 20 percent) and capital taxes (including property) that are very low by international standards; (iii) fiscal federalism should be reformed by strengthening the link between revenue and expenditure at the province level, including through meaningful ...
Ireland
... usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. ...
... usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. ...
Jobs and Growth: Supporting the European Recovery --
... protection legislation, reducing unemployment benefits, increasing child care support, implementing active labor market programs, and enacting pension-related reforms such as increasing the standard retirement age and increasing the incentive to work between the ages of 60 and 65. Finally, revenue-n ...
... protection legislation, reducing unemployment benefits, increasing child care support, implementing active labor market programs, and enacting pension-related reforms such as increasing the standard retirement age and increasing the incentive to work between the ages of 60 and 65. Finally, revenue-n ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... Those who argue for government spending note that low utilization of resources suggests the benefits, net of the social cost, of additional spending is high. For example, unemployed teachers could be working to raise the human capital of children. Layed-off construction workers could be doing much-ne ...
... Those who argue for government spending note that low utilization of resources suggests the benefits, net of the social cost, of additional spending is high. For example, unemployed teachers could be working to raise the human capital of children. Layed-off construction workers could be doing much-ne ...
Chapter 28
... An increase in expected future income increases the amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services now before their prices rise. A ...
... An increase in expected future income increases the amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services now before their prices rise. A ...
Assessment of the Fiscal Stance
... unemployment rate also remains extremely high at 14.0 percent (CSO, 2013a), despite more encouraging recent labour market data. If considerations of creditworthiness and debt sustainability were not a key factor, conditions in the real economy would warrant limiting procyclical fiscal adjustment mea ...
... unemployment rate also remains extremely high at 14.0 percent (CSO, 2013a), despite more encouraging recent labour market data. If considerations of creditworthiness and debt sustainability were not a key factor, conditions in the real economy would warrant limiting procyclical fiscal adjustment mea ...
US Economic Growth in the Gilded Age
... work. They reported TFP growth rates for the private domestic economy between 1855 and 1890 as .36 percent per year (Abramovitz, 1993, p. 223) or .37 percent per year (Abramovitz and David, 2000, p. 20). A rate of TFP increase of .37 percent per year for 35 years is pretty low, and implies a total r ...
... work. They reported TFP growth rates for the private domestic economy between 1855 and 1890 as .36 percent per year (Abramovitz, 1993, p. 223) or .37 percent per year (Abramovitz and David, 2000, p. 20). A rate of TFP increase of .37 percent per year for 35 years is pretty low, and implies a total r ...
Has durable goods spending become less sensitive to interest rates?
... may be an important consideration for policymakers. The Federal Reserve’s monetary policy affects real economic activity primarily through its influence over interest rates for consumers and businesses. The weakened impact of lowered interest rates on consumer spending has thus reduced the effective ...
... may be an important consideration for policymakers. The Federal Reserve’s monetary policy affects real economic activity primarily through its influence over interest rates for consumers and businesses. The weakened impact of lowered interest rates on consumer spending has thus reduced the effective ...
discretionary fiscal policy and economic activity in greece
... recessionary effects. Both the European Commission (2012b) and the ECB (2012) expressed concerns about the validity of the IMF approach and findings suggesting that they might be driven by outliers, with one of them being Greece itself. Driven by this discussion and need for continued fiscal consoli ...
... recessionary effects. Both the European Commission (2012b) and the ECB (2012) expressed concerns about the validity of the IMF approach and findings suggesting that they might be driven by outliers, with one of them being Greece itself. Driven by this discussion and need for continued fiscal consoli ...
Introduction to Macroeconomics TOPIC 1: Introduction, definitions
... Another macro variable often examined: the inflation rate. The inflation rate is the rate at which the price level increases. Why is it important to look at the inflation rate? In periods of inflation, not all wages rise proportionally. Some rise as much, some less, some much less, (few more!). Ther ...
... Another macro variable often examined: the inflation rate. The inflation rate is the rate at which the price level increases. Why is it important to look at the inflation rate? In periods of inflation, not all wages rise proportionally. Some rise as much, some less, some much less, (few more!). Ther ...
The postbellum deflation and its lessons for today
... as reported in Kendrick (1961b). Since firms under normal market conditions will only take on additional investment expenditures if they expect a positive rate of return, the growth of the capital stock can be viewed as a proxy for firms’ expectation of current and future profitability. Using this m ...
... as reported in Kendrick (1961b). Since firms under normal market conditions will only take on additional investment expenditures if they expect a positive rate of return, the growth of the capital stock can be viewed as a proxy for firms’ expectation of current and future profitability. Using this m ...
Abenomics
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Abenomics (アベノミクス, Abenomikusu) refers to the economic policies advocated by Shinzō Abe since the December 2012 general election, which elected Abe to his second term as prime minister of Japan. Abenomics is based upon ""three arrows"" of fiscal stimulus, monetary easing and structural reforms. The Economist characterized the program as a ""mix of reflation, government spending and a growth strategy designed to jolt the economy out of suspended animation that has gripped it for more than two decades.""The term ""Abenomics"" is a portmanteau of Abe and economics, and follows previous political neologisms for economic policies linked to specific leaders, such as Reaganomics, Clintonomics and Rogernomics.