'Spending multiplier' diaporamas de présentation

What happens when government spending is increased?

What happens when government spending is increased?. What happens when government spending is increased?. What happens when government spending is increased?. The relative lengths of the blue arrows is governed by the spending multiplier. What happens when government spending is increased?.

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KEYNESIAN MULTIPLIER EFFECTS

KEYNESIAN MULTIPLIER EFFECTS.

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KEYNESIAN MULTIPLIER EFFECTS

KEYNESIAN MULTIPLIER EFFECTS.

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This looks so cool

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AP Macroeconomics

AP Macroeconomics. Fun!!! With the MPC, MPS, and Multipliers. Disposable Income = DI. Net Income Paycheck After-tax income. Marginal Propensity to Consume (MPC). The fraction of any change in disposable income that is consumed. New $ = new C MPC= Change in Consumption

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The MPC and the Multipliers First: the Spending Multiplier

The MPC and the Multipliers First: the Spending Multiplier (either investment spending or government spending). ? Y = [ ? ] ? I. ? Y = [ ? ] ? I. The MPC and the Investment Multiplier

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The MPC and the Multipliers First: the Spending Multiplier

The MPC and the Multipliers First: the Spending Multiplier (either investment spending or government spending). ? Y = [ ? ] ? I. ? Y = [ ? ] ? I. The MPC and the Investment Multiplier

334 views • 33 slides

AP Macroeconomics

AP Macroeconomics. Fun!!! With the MPC, MPS, and Multipliers. Disposable Income. Net Income Paycheck After-tax income. Marginal Propensity to Consume (MPC). The fraction of any change in disposable income that is consumed. MPC= Change in Consumption Change in Disposable Income

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Slides Created By Kevin Brady and Eric Chiang

Interactive Examples. Keynesian Macroeconomics. Begin. To navigate, please click the appropriate green buttons. (Do not use the arrows on your keyboard). Material from this presentation can be found in: Chapter 18. Slides Created By Kevin Brady and Eric Chiang. CoreEconomics, 2e.

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Fiscal Policy

Fiscal Policy. By: Johnny, Faisal, Nish, Bianca, & Kalam . Welcome to Day 1!. Fiscal Policy . The Goal of Stabilization: Influence the amount spent and produced in an economy Meant to meet potential output To have less movements in the business cycle. Use of Fiscal Policy:

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Fiscal Policy

Fiscal Policy. By: Johnny, Faisal, Nish, Bianca, & Kalam . Welcome to Day 1!. Fiscal Policy . The Goal of Stabilization: Influence the amount spent and produced in an economy Meant to meet potential output To have less movements in the business cycle. Use of Fiscal Policy:

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Chapter 10: Aggregate Demand I

Chapter 10: Aggregate Demand I. The IS-LM Model. A short-run macroeconomic model which takes the price level constant and shows how changes in the level of Aggregate Demand cause changes in income. The IS curve: The Keynesian Cross Theory

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National Income and Price Determination

National Income and Price Determination. AP Economics Mr. Bordelon. Spending Multiplier. In 2009, the Federal government passed the American Recovery and Reinvestment Act, a stimulus package of $787 billion, with the intention of encouraging job growth and reversing the recession. How?

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Keynesian Model

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Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy. 1. What type of gap and what type of policy is best? What should the government do to spending? Why? How much should the government spend?. Price level. The government should increasing spending which would increase AD, but

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Income and Expenditures Equilibrium

Income and Expenditures Equilibrium. Equilibrium Real GDP: mpc = .7, mpi = .1. Movement to Equilibrium. 45 o line: AE = Y. 700. Total Expenditure. 600. Increase Output, increase Employment. 500. Reduce Output, Reduce Employment. Aggregate planned expenditure. 400. 0. 300. 400.

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Income and Expenditures Equilibrium

Income and Expenditures Equilibrium. Equilibrium Real GDP: mpc = .7, mpi = .1. Movement to Equilibrium. 45 o line: AE = Y. 700. Total Expenditure. 600. Increase Output, increase Employment. 500. Reduce Output, Reduce Employment. Aggregate planned expenditure. 400. 0. 300. 400.

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SPENDING MULTIPLIER

SPENDING MULTIPLIER. (FISCAL POLICY. MULTIPLIER EFFECT, MPC& MPS. MPC : Marginal Propensity to Consume - The portion (%) of additional income that is spent. How much would you spend? MPS: Marginal Propensity to Save The portion (%) of additional income that is saved.

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Multipliers & Fiscal Policy

Multipliers & Fiscal Policy. MPC, MPS & Multiplier Analysis. MPC = .60. MPC + MPS = 1. MPC + MPS = 1. Group 1: MPC = .90 Group 2: MPC = .60 If taxes were reduced , which MPC would shift AD more?. AD ? more with higher MPC Because, in short run, C? more.

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