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Title: Would the circular flow of economic activity contract if the government spends Post by: ezora on Nov 6, 2014 Would the circular flow of economic activity contract if the government spends more than in taxes?
Why is it important to convert the GDP and national income to constant dollar value when using them as measures of economic welfare? What is the difference between a cyclical fluctuation and a trend? Title: Re: Would the circular flow of economic activity contract if the government spends Post by: padre on Nov 6, 2014 Why is it important to convert the GDP and national income to constant dollar value when using them as measures of economic welfare? GDP does not include transfer payments such as interest and dividends, pensions, or other social security benefits. What is the difference between a cyclical fluctuation and a trend? The Trend is the increase or decrease in the series over a long period of time. For this reason is also known as the long-term trend. The Cyclical Fluctuation is the wavelike up and down fluctuations about the trend that is attributable to economic or business conditions. This fluctuation is also known as business cycle. During economic expansion, the cycle lies above the trend; during a downturn, beneath it. Title: Re: Would the circular flow of economic activity contract if the government spends Post by: ezora on Nov 19, 2014 The Fifth National Bank has total deposits of $20,000,000 and has legal reserves of 5,000,000. If the legal reserve is 10 percent, is the bank at its lending capacity?
What is the effect of the FOMC’s purchasing securities from individuals versus its purchasing them from banks, insofar as the expansion of money is concerned? |