INDEX Sr.Nos. Contents 1. INTRODUCTION TO FISCAL POLICY a. Objectives b. Role of fiscal policy 2. INSTRUMENTS a. Budget b. Taxation c. Public Expenditure d. Government Borrowing e. Deficit Financing 3. DISCRETIONARY FISCAL POLICY a. Fiscal Policy to cure recession b. Fiscal Policy to Control inflation 4. NON DISCRETIONARY FISCAL POLICY 5. EFFECTIVENESS OF FISCAL
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spending could lead to much larger changes in GDP in the economy. Expectations matter. Keynes believed that the expectations of consumers and producers are important in determining the overall level of economic activity. Expenditures matter. Keynes believed that expenditures were the determinant of real GDP in the economy. Classical model (Say’s Law) → Spending adjusts to output Fixed-price Keynesian Model → Output adjusts to spending Assumptions of the Classical Model Rational
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THE INDIAN HIGH SCHOOL DUBAI YEAR 2013-14 Page 1 COMPILED BY HOD ECONOMICS MRS. CHANDRA R INDEX S NO 1 TOPIC PAGE NO 3 - 20 INTRODUCTION TO MACRO ECONOMICS 21 – 35 2 AGGREGATE DEMAND AND AGGREGATE SUPPLY 3 36 - 43 MONEY AND BANKING 4 44 - 49 GOVERNMENT BUDGET 5 49 - 58 BALANCE OF PAYMENT AND FOREIGN EXCHANGE 6 59- 66 BOARD PAPER 2013 DELHI 7 67 - 75 MARKING SCHEME Page 2 COMPILED BY HOD ECONOMICS MRS. CHANDRA R HANDBOOK
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communism. The Bureau of Labor Statistics released a report in October 2012 detailing the economic history and drives future decision making. The Classical and Keynesian model perspectives are present in this report. Each factor also moves the aggregate demand curve to the left or the right as each action imposed or restrained shows another example of Classical and Keynesian theories. Unemployment Status October 2012 The U.S. Bureau of Labor Statistics (BLS) reports
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FISCAL POLICY AS AN ECONOMIC STABILIZATION MEASURE Fiscal Policy refers to the various decisions undertaken by the government regarding public expenditures and revenue. There are a large number of sub-policies that are encompassed by the fiscal system. But all the policies can be broadly categorized as being either ‘Public Expenditure’ or ‘Public Revenue’. It can be said that the fiscal policy is a direct government intervention in the economic processes of an economy. The fiscal policy
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None of the above is correct. 22.An economic contraction caused by a shift in aggregate demand causes prices to a. rise in the short run‚ and rise even more in the long run. b. rise in the short run‚ and fall back to their original level in the long run. c. fall in the short run‚ and fall even more in the long run.
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BUECO5903 BUSINESS ECONOMICS ASSIGNMENTS A and B Semester 1‚ 2013 Due dates for each section are provided in the Course Description. Part B – Macroeconomics – Worth 10% of total assessment: Answer any five (5) of the following questions. Each question is worth 10 marks. Question 10: a) Which of the following are final goods and services and which are intermediate goods and services? Please explain why in your answer. (4 marks – 1 mark each) i) A windscreen purchased by
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Chap1: The National Economy I. THE SCOPE OF MACROECONOMICS the major macroeconomics issues Economic growth; governments try to achieve high rates of economic growth economies suffer from inherent instability. As a result‚ economic growth and other macroeconomic indicators tend to fluctuate. Rate of eco growth: the percentage increase on national output‚ normally expressed over a 12 month period. Unemployment waste of human resources‚ unemployment benefits are a drain on gov revenues
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gross domestic product (GDP) is less than gross national product (GNP). This means that the nation produces domestically more than it is able to consume domestically. A5-4. If aggregate household saving is negative‚ the marginal propensity to save from disposable income must be negative. A5-5. If desired aggregate expenditure is greater than actual national output‚ national output will increase. A5-6. If the domestic price level decreases‚ the price of
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increase the government expenditure‚ it shifts AE1 curve upward to AEp curve‚ and also the real GDP will be increased from Y1 to Yp‚ then it leads to increased income‚ so the people are more willing to spend their income to purchase goods and services in the market‚ as the result of it‚ the aggregate expenditure will increases from E1 to Ep. Therefore‚ the government will close the recessionary gap at the new equilibrium ep. Diagram 1: Potential GDP Aggregate expenditure E=Y ep AEp
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