TAILIEUCHUNG - Chapter: Fiscal policy, and foreign trade

Tham khảo bài thuyết trình 'chapter: fiscal policy, and foreign trade', kinh tế - quản lý, kinh tế học phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 22 Aggregate demand, fiscal policy, and foreign trade David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith Some key terms Fiscal policy the government’s decisions about spending and taxes Stabilization policy government actions to try to keep output close to its potential level Budget deficit the excess of government outlays over government receipts National debt the stock of outstanding government debt 22. See the introduction to Chapter 22 in the main text. Government in the income-expenditure model Direct taxes affect the slope of the consumption function and hence the slope of the AD schedule. Government expenditure affects the position of the AD schedule 22. Fiscal policy? Income, output Aggregate demand 45o line AD0 Y0 But this ignores some important issues – prices, interest rates, and the need to fund the government spending. AD1 This seems to suggest that the government could .

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