Академический Документы
Профессиональный Документы
Культура Документы
Macroeconomics:
MEASURING GDP
Measurements,
AND
Fluctuations,
and ECONOMIC GROWTH
Government Policies
Market value
Final goods and services
Produced within a country
Household production
Underground economic activity
Health and life expectancy
Leisure time
Environmental quality
Political freedom and social justice
2012 Pearson Education
Unemployment results in
Frictional unemployment
Structural unemployment
Cyclical unemployment
In a simple economy,
people consume only
oranges and haircuts.
The CPI basket is 10
oranges and 5 haircuts.
The table also shows the
prices in the base period.
The cost of the CPI basket
in the base period was $50.
2012 Pearson Education
Intermediate targets
Fiscal Stimulus
A fiscal stimulus is the use of fiscal policy to increase
production and employment. It is usually used during
recession episodes.
Fiscal stimulus can be either
Automatic
Discretionary
Automatic fiscal policy is a fiscal policy action triggered
by the state of the economy with no government action.
Discretionary fiscal policy is a policy action that is
initiated by an act of Parliament.
2012 Pearson Education
Fiscal Stimulus
Automatic Fiscal Stimulus
In a recession, receipts decrease and outlays increase.
So the budget provides an automatic stimulus that helps
shrink the recessionary gap.
Fiscal Stimulus
Discretionary Fiscal Stimulus
Most discretionary fiscal stimulus focuses on its effects on
aggregate demand.
Fiscal Stimulus
Discretionary Fiscal Stimulus
In times of recession, a fiscal expansionary policy implies
that government expenditures are expanded, and tax rates
are reduced so as to boost the economic growth and
combat unemployment.