Eating With A Fistula

Why you should not right now drastically reduce the tax burden and not gradual. The Great Fear


increase the budget deficit through an expansionary fiscal space:
1.Cosa mean?
2.Cosa involved?
3.How can account for the effects?

First we must consider two basic components:

1.Il goods market and the financial market for articulated analysis of the production (Y) and the interest rate (i). The resulting model is named IS-LM.
NB = IS curve goods market
= LM curve of the market 2.The financial

'aggregate supply to describe the effects of production (Y) on the price level (p) and aggregate demand to show the effects of the price level (p) on production (Y). The model that derives named AS-AD.
NB AS = aggregate supply curve
AD = aggregate demand curve

said that you should know that: 1.A
increased production leads to an increase in the level of prezzi.Perchè?
-If production increases more employment. If employment increases
-employment decreases.
-Less unemployment means higher nominal wages.
-If nominal wages increase companies raise prices, resulting in an increase the price level.
-Aggregate demand shows us how the level of production is a decreasing function of the price level.
These were the general premises. What happens
graphically, and then simulating faithfully the reality, when a government decides to reduce taxes?

AS-AD MODEL: (unfortunately I can not post the chart, I will arrive soon)
1.How the model reacts to an increase in the budget deficit in the short term? The short term is the time where our variables AS-AD and IS-LM when changes occur.

Short period:

-production-Increase in Increase in interest rate-price increase


2.How the model reacts in the medium term? The average period is the time when you have the stabilization of the economy through a return naturale.Alcuni changes to the production level, however, remain fixed, thus bringing all faults and virtues.


Middle Period:
-No change as regards the production
-Increase in interest rate-price increase


I would say that the most significant increases are at the end of the adjustment of the interest rate and prezzi.Tale politics is not like me to recommend to a country that is living and is preparing for another recession. Pull
you the money ... with his head before he voted with the c ****!