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Why fiscal policy has a multiplied effect on natural incme?
Fiscal policy can have a multiplied effect on national income due to the concept of the fiscal multiplier, which arises when government spending or tax changes influence overall economic activity. When the government increases spending, it directly raises demand for goods and services, leading to higher production and income for businesses and employees. This initial spending creates a ripple effect, as recipients of this income tend to spend a portion of it, further stimulating demand and income in the economy. Consequently, the initial fiscal action generates a larger overall impact on national income than the amount initially spent or taxed.
Does fiscal or monetary policy influence real GDP?
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
Why does monetary policy directly influence businesses and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influence businesses and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influenced businesses and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why fiscal policy has a multiplied effect on natural incme?
Fiscal policy can have a multiplied effect on national income due to the concept of the fiscal multiplier, which arises when government spending or tax changes influence overall economic activity. When the government increases spending, it directly raises demand for goods and services, leading to higher production and income for businesses and employees. This initial spending creates a ripple effect, as recipients of this income tend to spend a portion of it, further stimulating demand and income in the economy. Consequently, the initial fiscal action generates a larger overall impact on national income than the amount initially spent or taxed.
Does fiscal or monetary policy influence real GDP?
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
Why does monetary policy directly influence businesses and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influence businesses and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influenced businesses and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influence businesses an individuals than fiscal policy does?
because of its effect on interest rates.
Why does monetary policy more directly influence business and individuals than fiscal policy does?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influence businesses and individuals than fiscal policy?
on A+: because of its effect on interest rates :))
Why does monetary policy more directly influence businesses individuals than fiscal policy does?
because of its effect on interest rates.
Why does monetary policy more directly influence business and individuals than fiscal policy?
on A+: because of its effect on interest rates :))
Fiscal policy and its objectives?
fiscal policy OBJ. in relation to taxation policy and expenditure policy
What is a muliplier?
A multiplier is a factor by which a quantity is increased or decreased in economic contexts, often referring to the effect of fiscal or monetary policy on overall economic activity. In mathematics, a multiplier is a number used to multiply another number, effectively scaling it up or down. In both cases, the concept emphasizes how a change in one variable can lead to a larger impact on another, reflecting the interconnectedness of systems.
