1. Fiscal Policy and the EconomyAS Macro – Autumn 2013 08:04 2. What is fiscal policy? • Fiscal policy involves the use of government spending, taxation and borrowing…
1. Chapter 16National Income 2. Lecture Plan • Objectives • Circular Flow of Economic Activities and Income – Two Sector Model – Four Sector Model• • • •…
1. Fiscal Policy 2. Or, the decisions made Hereand Here 3. What is it? Policy carried out by the government with the purpose of stabilizing the economy. s comes to us from…
1. UNIT 4 MACRO ECONOMICSUNIT 5 AGGREGATE SUPPLY AND ROLE OF MONEY 2. RECAP• As for now we learned various aspects ofmicro economics– Demand– Supply– Cost of production–…
Slide 1: Next page Copyright 2003 South-Western Thomson Learning. All rights reserved. Working With Our Basic Aggregate Demand/Supply Model Starter: Draw the business cycle.…
Slide 1 Slide 2 Slide 3 I. AD/AS Model To Analyze changes in real GDP & price level simultaneously Provides insights on inflation, unemployment, & economic growth…
Slide 1AE equilibrium At full employment, real GDP equals potential GDP and the unemployment rate equals the natural unemployment. Y = Y FE u c = 0 g 3% 2% u 5% Potential…
Slide 1AD and AS Slide 2 AGGREGATE DEMAND (AD): The quantity of real GDP demanded (total quantity of G&S that all buyers in an economy want to buy) at different price…