to higher long - term interest rates and widening interest rate spreadscould leadto higher long - term interest rates and widening interest rate spreads
economic activityto influenceeconomic activity
some increase in aggregate spending ... with larger increases the further the economy is from full employmentwould causesome increase in aggregate spending ... with larger increases the further the economy is from full employment
to a higher exchange rate ... crowding out net exports and any positive aggregate demand effect from fiscal stimuluswill leadto a higher exchange rate ... crowding out net exports and any positive aggregate demand effect from fiscal stimulus
to an increase in real GDP larger than the initial rise in aggregate spendingleadsto an increase in real GDP larger than the initial rise in aggregate spending
an increase in GNP , an appreciation of the currency , and a decrease in the current account balance in a floating exchange rate system according to the AA - DD modelcausesan increase in GNP , an appreciation of the currency , and a decrease in the current account balance in a floating exchange rate system according to the AA - DD model
to an increase in real GDPleadsto an increase in real GDP
an increase in output from the goods side of the economycausesan increase in output from the goods side of the economy
an increase in GDP(passive) caused byan increase in GDP
to an increase in aggregate demandleadsto an increase in aggregate demand
to increase in aggregate demandwill leadto increase in aggregate demand
to an increase in aggregate demandleadsto an increase in aggregate demand
GDP and unemployment level in this countryinfluencedGDP and unemployment level in this country
to a larger government budget deficit or a smaller budget surplusleadsto a larger government budget deficit or a smaller budget surplus
Fiscal policy and effect on aggregate demand in an open economycausesFiscal policy and effect on aggregate demand in an open economy
macroeconomic conditions by adjusting spending and taxation policies to alter aggregate demand When aggregate demand falls below the potential output of the economyinfluencemacroeconomic conditions by adjusting spending and taxation policies to alter aggregate demand When aggregate demand falls below the potential output of the economy
interest rates to rise which reduces business investment , limiting the effects of the fiscal expansioncausesinterest rates to rise which reduces business investment , limiting the effects of the fiscal expansion
to higher outputwill leadto higher output
to growth in activity and employmentwill leadto growth in activity and employment
interest rates to rise , thereby reducing investment spendingcausesinterest rates to rise , thereby reducing investment spending
to inflationdoes ... leadto inflation
inflationmay ... causeinflation
interest rates to risecausesinterest rates to rise
in greater inflation pressures and increasing public debtcould resultin greater inflation pressures and increasing public debt
to current account deficitcontributedto current account deficit
aggregate demand and in turn employment and output through changes in government expenditure and taxesinfluencesaggregate demand and in turn employment and output through changes in government expenditure and taxes
to an increase in the long - term equilibrium ( or natural ) interest rate , the rate that will prevail when the economy is at full employment and prices are stablecontributedto an increase in the long - term equilibrium ( or natural ) interest rate , the rate that will prevail when the economy is at full employment and prices are stable
interest rates to rise , thereby reducing private spendingcausesinterest rates to rise , thereby reducing private spending
to the increase in the interest rates levelleadsto the increase in the interest rates level
an increase in aggregate demandcan causean increase in aggregate demand