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The effect arising from the positive
relationship between net taxes (taxes less transfer payments) and income
which dampens the multiplier effect.
Increases in government
purchase and transfer payment programs or reductions in tax programs
applied to raise aggregate demand and contribute to employment objectives.
Adjustments in government
purchase, tax, and transfer payment programs made to ease unemployment and
inflation problems.
Reductions in government
purchase and transfer payment programs or increases in tax programs applied
to contribute to price objectives by reducing expenditure gaps.
Federal transfer payments
and purchases of goods and services less federal tax receipts.
The budget which would occur
if the economy were fully employed, given existing government purchase,
tax, and transfer payment programs.
The federal government
surplus (tax receipts less government spending) which would occur if the
economy were fully employed, given existing tax and spending programs.
The change in equilibrium
aggregate output and real income divided by the change in government purchases
provoking it.
Taxes less the sum of
government purchases of goods and
services and transfer payments expressed as a positive function of
aggregate output and real income.
The period between the
enacting of policies (open-market
purchases, tax rates changes, and the like) and the impact of the actions on unemployment and
inflation rates.
The lag between the time
when legislation calling for fiscal policy action is proposed to the U.S.
Congress and the time when Congress passes the legislation.
The change in equilibrium
aggregate output and real income divided by the change in the tax constant
(Tx,,) provoking it.
The change in equilibrium
aggregate output and real income divided by the change in the transfer
payment constant which provokes it.
The equilibrium value for Y
obtained under the assumption that output can adjust to any level of
aggregate demand-that is, with the full-employment constraint on output
ignored.
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