This is a ppt which will help you all to understand the multiplier concept in depth. It have plenty of step by step economic conversion, plenty of example.
This is a ppt which will help you all to understand the multiplier concept in depth. It have plenty of step by step economic conversion, plenty of example.
In tough economic times, it takes courage to look at the options. The current government intervention in the market will have a severe and negative effects. To see what the Obama administration is planning, take a look at the slideshow. It is pure Keynesian. Do we really need this remedy? It really is not up for us to decide. Likes of Summers, Frank and Obama have decided these questions for us. The task is now, how do we maximize our wealth and prosperity in these economic conditions full of stimulus packages.
Even Keynes was flummoxed at times as paraodx of thrift points out.
The paradox of thrift (or Paradox of Saving) is a paradox of economics propounded by John Maynard Keynes. The paradox states that if everyone saves more money during times of recession, then aggregate demand will fall and will in turn lower total savings in the population
Following this presentation you will:
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Building Your Employer Brand with Social MediaLuanWise
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Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
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In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
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1. The IS-LM Model
Chahir Zaki
FEPS, Cairo University
Second semester, 2012
2. Determination of Aggregate Output
The total quantity demanded of an economy's
output is the sum of four types of spending
Yad = C + I + G + NX
Equilibrium occurs in the economy
when the total quantity of output supplied
equals the total quantity of output demanded
Y = Yad
Analysis assumes the price level is fixed
3. Consumption Expenditure and the
Consumption Function
Income is the most important factor determining consumption spending
Disposable income (Y ) is total income less taxes (Y - T)
D
The marginal propensity to consume (mpc ) is the slope of
the consumption function (∆C / ∆Y ), the change in consumer
D
expenditure that results from an additional dollar of disposable income
a is automonous consumer expenditure, the amount of consumer
expenditure that is independent of disposable income (how much
will be spent when disposable income is 0)
C = a + mpc(YD )
8. Expenditure Multiplier
A change in planned investment spending leads to an even larger
change in aggregate output
An increase in planned investment spending leads to an
additional increase in consumer expenditure which raises aggregate
demand and output further
1
∆Y = ( )∆I
1− mpc
1
∆Y / ∆I = ( )
1− mpc
9.
10.
11. Changes in Autonomous Spending
Any change in autonomous spending will lead to a multiplied
change in aggregate output
1
∆Y = ( a + I )( )
1− mpc
The shift in the aggregate demand function can come from a
change in planned investment, a change in autonomous
consumer spending, or both
Changes in autonomous spending are dominated by
animal spirits
12. Government’s Role
Government spending and taxes
can be used to change the position of the
aggregate demand function
Government spending adds directly
to aggregate demand
Taxes do not affect aggregate demand directly
C = a + [ mpc × (Y − T )] = a + ( mpc × Y) − ( mpc × T )
If taxes change, consumer expenditure changes
in the opposite direction
∆C = - mpc × ∆T
13.
14. Role of International Trade
A change in net exports (exports - imports) is positively
related to changes in aggregate output
1
∆Y = ∆NX( )
1− mpc
15.
16.
17. The ISLM Model
• Includes money and interest rates in the Keynesian
framework
• Examines an equilibrium where aggregate output equals
aggregate demand
• Assumes fixed price level where nominal and real quantities
are the same
• IS curve is the relationship between equilibrium aggregate
output and the interest rate
• LM curve is the combinations of interest rates and aggregate
output for which MD = MS
18. Equilibrium in the Goods Market:
The IS Curve
• Interest rates and planned investment spending
– Negative relationship
• Interest rates and net exports
– Negative relationship
• The points at which the total quantity of goods produced
equals the total quantity of goods demanded
• Output tends to move toward points on the curve that
satisfies the goods market equilibrium
19.
20.
21.
22. Equilibrium in the Market for Money:
The LM Curve
• Demand for money called liquidity
preference
• Md/P depends on income (Y) and interest
rates (i)
• Positively related to income
– Raises the level of transactions
– Increases wealth
• Negatively related to interest rates
23. Equilibrium in the Market for Money:
The LM Curve (cont’d)
• Connects points that satisfy the equilibrium
condition that MD = MS
• For each level of aggregate output, the LM
curve tells us what the interest rate must be
for equilibrium to occur
• The economy tends to move toward points on
the LM curve