Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2
Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2
Find more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2ry Act that a second depression is no longer a possibility." The Japanese government cut taxes and increased spending to stimulate its troubled economy. These are examples of fiscal policy, which focuses on the effects of taxing and public spending on aggregate economic activity, what is the proper Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2role of fiscal policy in the economy?•Can fiscal policy reduce swings in the business cyde?•Why did fiscal policy fall on hard times for a quarter cenEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
tury, and what brought it back to life?•Does fiscal policy affect aggregate supply?•And how did the cash-for-dunkers program work out?Answers to theseFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2scal policy in moving the economy to its potential output. We review U.S. fiscal policy during the last century, and discuss limitations to its effectiveness. The Great Recession had a major impact on the economy. We'll consider the fiscal response to that calamity.A more complex model of fiscal pol Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2icy appears in the appendix to this chapter.Topics discussed include:•Theory of fiscal policy •Discretionary fiscal policy •Automatic stabilizers •FisEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
cal policy in practice•limits of fiscal policy •Deficits, surpluses, then more deficits •Fiscal policy response to the Great RecessionLMM a»fWL lu Mr\Find more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2ecessionary GapPotential output LRASThe aggregate demand curve AD and the short-run aggregate u-pply curve. SPAS, T<> intersect cl paint e*. Output tolls short d the eccoorn/s potential. The resulting recessionary gap coukl be chsed by discretionary fiscal púỉcy t«3i increases aggregate demand by ju Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2st tte right amount. An increase in government purchases. 0 decrease In nạt saxes, or some combination ccdd shà aggregate demand cot to AD', moving thEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
e economy CSX to 85 potential cctjXit at e*.ii?ịdemanded decreases along the new aggregate demand curve. The price level rises until quantity demandedFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2e one originally expected, and output equals potential GDI’ ol $14.0 trillion. Note that an expansionary fiscal polity aims ĨO close a recessionary gap.The intersection at point Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2enough), the appropri are fiscal stimulus can close rhe recessionary gap and foster a long-run equilibrium ar potential GDP. Bur rhe increase in outpuEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
t results in a higher price level. What’s more, if the iederal budget was in balance before the fiscal stimulus, an increase in government spending crFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2nd stimulate aggregate demand more than necessary to achieve potential GDP? In the short run, real GDP exceeds potential output. In the long run, the short-run aggregate supply curve shifts back until it intersects rhe aggregate demand curve ar potential output, increasing rhe price level further hu Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2t reducing real GDP to potential output.Find more at http77w.vw.downloadslKle.com230Part 3 Fiscal and Monetary Policy11-lc DISCRETIONARY FISCAL POLICYEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
TO CLOSE AN EXPANSIONARY GAPcontractionary fiscal policy A decrease in government purchases, increase in net taxes, a seme combination of the hvo aimFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2y gapSuppose output exceeds potential GDP. In Exhibit 2, the aggregate demand curve, AD', intersects the aggregate supply curve to yield short-run output of $14.5 trillion, an amount exceeding the potential of SI4.0 trillion. The economy faces an expansionary gap of S0.5 trillion. Ordinarily, this g Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2ap would be closed by a leftward shift of the short-run aggregate supply curve, which would return the economy to potential output but at a higher priEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
ce level, as shown by point e".But the use of discretionary fiscal policy introduces another possibility. By reducing government purchases, increasingFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2ld move the economy to potential output without the resulting inflation. If the policy succeeds, aggregate demand in Exhibit 2 shifts leftward from AD' to AD”, establishing a new equilibrium at point e*. Again, with just the right reduction in aggregate demand, output falls to $ 14.0 trillion, the p Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2otential GDP. ('.losing an expansionary gap through fiscal policy rather than through natural market forces results in a lower price level, not a highEbook Macroeconomics - A contemporary introduction (10th edition): Part 2
er one. Increasing net taxes or reducing government purchases also reduces a government deficit or increases a surplus. So a contractionary fiscal polFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the Recover Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2culated expansionary and contractionary fiscal policies are difficult to achieve. Their proper execution assumes that (1) potential output is accurately gauged, (2) the relevant spending multiplier can be predicted accurately, (3) aggregate demand can be shifted by just the right amount, (4) various Ebook Macroeconomics - A contemporary introduction (10th edition): Part 2 governmentEXHIBIT 2Find more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the RecoverFind more at httpi/Avww.downtoadslide.oomFISCAL POLICY•President Barack Obama claimed on February Ì 7, 2010, that "it is largely thanks to the RecoverGọi ngay
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