Let G be annual US government purchases, T be annual US tax revenues, and Y be annual

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Let G be annual US government purchases, T be annual US tax revenues, and Y be annual US output of all goods and services. All three quantities are given in dollars. Interpret the statements about the two derivatives, called fiscal policy multipliers.
(a) dY ∕dG = 0.60 

(b) dY ∕dT = −0.26

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Applied Calculus

ISBN: 9781119275565

6th Edition

Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale

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