tag:blogger.com,1999:blog-19218384598996644852023-11-16T02:50:31.416-08:00KeynesianerKeynesianerhttp://www.blogger.com/profile/16073054037161997603noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1921838459899664485.post-34398431615125226902016-09-09T14:33:00.001-07:002016-09-09T14:33:40.433-07:00Subject: The CORE Project<br />
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<span style="font-weight: normal;">13.6 Fiscal policy: How government can dampen and amplify fluctuations</span></div>
<span class="caption-title"> </span><br />
<span class="caption-title">Figure
13.11</span><span class="caption-body"> Government austerity can worsen a recession.</span><br />
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<span class="caption-body">The Students should understand the monetary context between the savings rate and deficit spending and dissaving. If you drop the real investment you will get the monetary savings and the real monetary limitation of production. </span><br />
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<span class="caption-body">If the savings rate includes the real saving from investment, we may use Figure 13.11. </span><br />
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I improved the Figure 13.11 in green, so students will easier recognize the monetary limitation of production:<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSpUREPM58k2zn4XVBzFg-3jtDBjNiJdmg0p4h7b_UDGQbT96bP2acshFOC7fN1cMlouKdfGu-ZGhyvV-pu65UT0xwDO_X3dWwplDjCnlHQDqD3iJJRVsLzg3pW2-l17TnMN2-oRhZhwM/s1600/Multiplier.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="409" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSpUREPM58k2zn4XVBzFg-3jtDBjNiJdmg0p4h7b_UDGQbT96bP2acshFOC7fN1cMlouKdfGu-ZGhyvV-pu65UT0xwDO_X3dWwplDjCnlHQDqD3iJJRVsLzg3pW2-l17TnMN2-oRhZhwM/s640/Multiplier.png" width="640" /></a></div>
<span id="goog_1367605276"></span><span id="goog_1367605277"></span><br />
<span id="goog_1367605276">The same with Figure 13.5, I called it The Simple Model, you will see:</span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRcXIBCQsbVXq5cYXGGCdVO1aoYh6RNZU5C7W14pIJ8-zA3Z492shqmlxYTzM7p-EHkbuNVTJiv4nM6Fnb_5uZnYYcKaoUn7Zb0IAIWFutocgWlvcTufrWnhvMp6FpMaWp3Sf_dPOgOYI/s1600/SimpleModel.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRcXIBCQsbVXq5cYXGGCdVO1aoYh6RNZU5C7W14pIJ8-zA3Z492shqmlxYTzM7p-EHkbuNVTJiv4nM6Fnb_5uZnYYcKaoUn7Zb0IAIWFutocgWlvcTufrWnhvMp6FpMaWp3Sf_dPOgOYI/s640/SimpleModel.png" width="640" /></a></div>
<span id="goog_1367605276"> </span>Keynesianerhttp://www.blogger.com/profile/16073054037161997603noreply@blogger.com0