Discuss how the government can use discretionary fiscal policy and automatic stabilisers to stabilise fluctuations in real GDP. What tools does the government have at its discretion to stabilise the economy? Suppose the government decides to decrease income taxes. Show in a diagram and explain how this policy will lead to an increase in real GDP. Explain how potential output may be affected. A discretionary fiscal policy refers to deliberate changes in the level of government spending‚ transfer
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Institution: Business Ethics for Affordable Housing It is basically clear from the elaboration that house affordability is pervasively impact on all aspects of our existence .It is the central locus that holds personal and family life. The essence portrays that good housing clearly defines our community and determines our access to jobs‚ to services‚ to stores and most important other people in our lives .This gives one the opportunity to draw that‚ yet housing is even more than just residential environment
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INTRODUCTION The old Peru was sustained in an economy based on agriculture as it was incumbent upon all pre-modern States. The displacement of this activity by mining during the colonial period and the later development of the cities with the Republic led to a redistribution of the population that took us from being a predominantly rural country prior to the 1950s to a country with urban population at the beginning of the 21st century. In 2002‚ a 28.8 per cent of the population was rural and
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4a) National income is the total value of goods and services produced in a country in any given year. Government expenditure (G) is the amount of money the public sector spends on public goods and services‚ such as maintaining public schools‚ as well as public investment expenditure‚ such as building of public infrastructure. An increase in government expenditure will cause a direct increase in the aggregate expenditure (AE) of the economy. This will increase the national income of the economy via
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Fiscal and Monetary policy- The response of global economic crisis especially in EU Introduction Monetary and fiscal authorities across the globe have responded quickly and decisively to these extraordinary developments. In particular‚ against the background of rapidly receding inflationary pressures and risks‚ the Euro system has taken monetary policy and liquidity management measures that were unprecedented in nature‚ scope and timing. Since
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export effect A decrease in c (inward SR) Increase in MS (right) Collapse in housing mkt (left) 3. What is a long-run equilibrium and what does it imply about the economy? Long Run Equilibrium The long run equilibrium occurs where aggregate supply equals aggregate demand. The primary difference in short run and long run analysis is that in the short run‚ capital is fixed and firms cannot enter or exit the market. Change in production can only occur by changing the amount of labor employed
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Young People and Social Housing – Case Study Mandy By Robert Palmer 1. Mandy is a young lady at risk of being homeless. It is important to understand Social Housing for the Homeless or those at Risk of Being Homeless. Causes for youth homelessness or youth at risk of homelessness vary and include Domestic violence‚ a shortage of affordable housing ‚ family breakdown‚ drug and alcohol abuse and in Mandy’s case Mental Illness. People at risk of being homeless are some of the most vulnerable
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South African labour market policies Prior to the year 1994 South Africa was having issues of poverty and inequalities which were largely legacy of apartheid and past race-based policies (Jagwanth‚ S. 2000:1). Surprisingly‚ one of the important factors determining the symptoms and extents of poverty and inequality in South Africa is the labor market (Jagwanth‚ S. 2000: 1). This essay will look at whether the state’s changed labor and market policies gives prospect to corporations in South Africa
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Student Preferences in Housing Survey data analysis: preferred unit styles and costs Sarah L. Samuels | Eric D. Luskin Student housing has the potential to offer multiple benefits and risks. Living in student-focused housing can‚ for example‚ ease a student’s adjustment to college‚ improve study habits and enhance general well being (Enochs & Roland‚ 20061). From the broader standpoint of the college or university‚ housing is an increasingly important factor in recruiting new students (June
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Fiscal Deficit-Economic Growth Nexus in India: A Cointegration analysis Ranjan Kumar Mohanty1 Abstract The basic aim of the study is to examine both the short run and long run relationship between fiscal deficit and economic growth in India by covering the time period from 1970-71 to 201112. Johansen Cointegration test‚ Granger Causality test‚ And Vector Error correction Model (VECM) technique are adopted in order to examine the objectives of this study. The Johansen methodology confirms the existence
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