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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

the government 's and federal bank 's Monetary Policy(passive) can be influenced byThe level of demand in the economy as a whole

That combinationwill leadto a lot of demand in the economy

/ or the overall level of taxationto influencethe level of demand in an economy

the overall level of taxationto influencethe level of demand in an economy

an increase in government expenditure ... the level of employmentwould ... resultin an increase in aggregate demand of the economy

varying total public sector expenditure and / or the overall level of taxationto influencethe level of demand in an economy

A fiscal policy instrumentcan influencethe demand pattern in an economy

In other words , the one tool that any central bank has is the ability to establish the wholesale interest rates to the banking sectorinfluencingthe demand within the economy

its abilityto influencetotal demand in the economy

government fiscal policyis designedto increase aggregate demand in the economy

to provide enough resources to those not in workcan contributeto total demand in the economy

the factorswill leadto an increase in aggregate demand in an economy

Increased disposable incomeleadsto increase in aggregate demand in the economy

aggressive fiscal actionsdesignedto increase aggregate demand in the economy

how changes in the level of government expenditure and/or taxescan influencethe level of aggregate demand in an economy

changes in the level of government expenditure and/or taxescan influencethe level of aggregate demand in an economy

how changes in the level of government expenditure and/orcan influencethe level of aggregate demand in an economy

the level of government expenditure and/or taxescan influencethe level of aggregate demand in an economy

Economic effects Governments use fiscal policyto influencethe level of aggregate demand in the economy

the economy governments use fiscal policyto influencethe level of aggregate demand in the economy

Economic effects of fiscal policy Fiscal policy is used by governmentsto influencethe level of aggregate demand in the economy

Economic effects Governments use fiscal policy ... , so that certain economic goals can be achievedto influencethe level of aggregate demand in the economy

Governments use fiscal policyto influencethe level of aggregate demand in an economy

Governments use fiscal policyto influencethe level of aggregate demand in the economy

Governments use fiscal policy ... , so that certain economic goals can be achievedto influencethe level of aggregate demand in the economy

Fiscal policies are usedto influencelevels of aggregate demand in the economy

changes in interest ratescan influencethe level of aggregate demand in an economy

the governmentcan influencethe level of aggregate demand in the economy

Fiscal Policy : Fiscal Policy Fiscal policy is used by the governmentsto influencethe level of aggregate demand in the economy

Fiscal policy is used by governmentsto influencethe level of aggregate demand in the economy

Fiscal Policy Fiscal policy is used by the governmentsto influencethe level of aggregate demand in the economy

use fiscal policyto influencethe level of aggregate demand in the economy

Fiscal policy can be usedto influencethe level of aggregate demand in the economy

The changes in fiscal and monetary policies which aimto influencethe level of aggregate demand in economy

taxesdesignedto decrease aggregate demand in the economy

interest ratescan influencethe level of aggregate demand in an economy

governmentsto influencethe level of aggregate demand in the economy

Governmentscan influencethe level of aggregate demand in an economy

taxescan influencethe level of aggregate demand in an economy

usedto influenceaggregate demand within an economy

These changes(passive) are designedThese changes

to decline and government overreachoften leadingto decline and government overreach

expansioncausesexpansion

economic output(passive) is strongly influenced byeconomic output

inflation(passive) is caused byinflation

Unemployment(passive) caused byUnemployment

High rate of Inflation High rate of inflation(passive) is caused byHigh rate of Inflation High rate of inflation

High rate of inflation(passive) is caused byHigh rate of inflation

demand - deficient ) Unemployment(passive) Is caused bydemand - deficient ) Unemployment

to lower inflationleadsto lower inflation

to an increase in pricesleadingto an increase in prices

in the short run(passive) is ... influenced byin the short run

in turncausedin turn

in lower national output and higher unemploymentresultingin lower national output and higher unemployment

inflationwill causeinflation

inflation to rise above targetis causinginflation to rise above target

economic growth(passive) is caused byeconomic growth

Short run economic growth(passive) is caused byShort run economic growth

of GDP plus the change in the level of debtis composedof GDP plus the change in the level of debt

government fiscal policy(passive) is designedgovernment fiscal policy

a generalized fall in prices(passive) is caused bya generalized fall in prices

Inflation(passive) is caused byInflation

to slower growth which in turn holds back confidence in companies who defer investmentleadingto slower growth which in turn holds back confidence in companies who defer investment

to a fall in economic growthwill leadto a fall in economic growth

to excess inflation if demand is excessivewill leadto excess inflation if demand is excessive

to economic growthleadsto economic growth

to higher borrowing and higher consumer spending which leads to an increase in inflationleadsto higher borrowing and higher consumer spending which leads to an increase in inflation

to further wage - push and so onwill ... leadto further wage - push and so on

even more unemploymentcauseseven more unemployment

to growthwill ... leadto growth

to unprecedented falls in output and employment within the construction industryleadingto unprecedented falls in output and employment within the construction industry

to companies requiring more workersshould leadto companies requiring more workers

to unemploymentleadingto unemployment

to even more job creationleadingto even more job creation

Most economists believe(passive) is caused byMost economists believe

to higher inflationary pressurescontributesto higher inflationary pressures

to more customers and higher revenues for small firmsleadto more customers and higher revenues for small firms

the inflation rate to fallcausingthe inflation rate to fall

to even lower wages overallleadingto even lower wages overall

to further deflation ... and so oncontributesto further deflation ... and so on

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Smart Reasoning:

C&E

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