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Y1 31) Fiscal Policy - Problems and Evaluation
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2 жыл бұрынExpansionary Fiscal Policy Evaluation. Video covering all the key evaluation points for expansionary fiscal policy
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If I don't get to inject that juicy Ricardian Equivalence as evaluation for economic growth somewhere in tomorrow's macro paper, then was it really worth studying economics 😵?? What a beautiful piece of evaluation oh my lord
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time to learn ricardian equivalence
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@joshuadavies-jones8005 2 жыл бұрын
Wouldn't inflation be an evaluative point? If the question doesn't specify where inflation currently is, if the economy is below the 2% inflation target than inflation might be good for reaching that target. However if inflation is already low and stable than obviously expansionary fiscal policy would be bad. Thanks.
@YashG04 2 жыл бұрын
Yeah definitely that policy would be pointless if that’s the case
@mtsl7780 2 жыл бұрын
Just because inflation is low doesn’t render expansionary policy useless. It could be used to increase cyclical unemployment or see a shift out of LRAS
@billyfox6368 2 жыл бұрын
@@mtsl7780 Fiscal policy always relates to aggregate demand. LRAS would be supply-side, but you're right that it would be suitable for short-run economic growth.
@joshuadavies-jones8005 2 жыл бұрын
@@mtsl7780 Not useless, bad as if inflation was on target, increasing inflation would be bad. Loss of confidence, less investment, unsure of value of money, etc. If inflation was below target for example if there was deflation, expansionary fiscal policy would be good to get it on target.
@tobyanderson5360 2 жыл бұрын
@@billyfox6368 true but a fiscal policy in the short run can also be a supply side policy in the long run. It more depends on the motive of the policy but it will have effects on both demand and supply of the economy. Less black and white in reality.
@MC10W 5 ай бұрын
Theeefore a better thing to do is for the gov to use a combination of these policies
@skitz0299 2 жыл бұрын
Legend
@Fred-hunt 2 жыл бұрын
Thanks man
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@fartunkulmiye5425 2 жыл бұрын
4:30
@blendco2340 2 жыл бұрын
what is an output gap
@macauleyburgess5102 2 жыл бұрын
When actual economic growth is different to potential economic growth. A negative output gap is when actual economic growth is lower than potential economic growth. A positive output gap is when actual economic growth is higher than potential economic growth. Hope this helps👍
@stephuuuny540 2 жыл бұрын
Gap between actual growth and trend growth
@kmg55 Жыл бұрын
@@macauleyburgess5102 how can actual output be higher than potential?
@thesnackbandit Жыл бұрын
@@kmg55 When factors of production are being used unsustainably. Examples include: Workers working long overtime hours, capital machinery being used beyond it's recommended capacity, and economic growth fueled by excessive debt. It is unlikely to be long term.
@kmg55 Жыл бұрын
@@thesnackbandit ah that makes sense thanks a lot
@HungryPNG 2 жыл бұрын
Very interesting Do you sell Econ text books?
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@theambergryphon4266 11 ай бұрын
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@MC10W 5 ай бұрын
Bad thing about contsxgionsry fiscal policy is the regressiveness if incressdinh taxes
@vxz1357 4 ай бұрын
Nga what?
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