Senin, 03 April 2017

if government expenditure on goods and services increase by​ $10 billion, then aggregate demand

Now I will share if government expenditure on goods and services increase by​ $10 billion, then aggregate demand , Government Spending (goverment expenditure) is part of the fiscal policy (Sadono Sukirno, 2000), which is a government action to regulate the course of the economy by determining the amount of government revenues and expenditures each year, which is reflected in the documents the State Budget (APBN) for national and the regional Budget (APBD) for local or regional. The purpose of this is fiscal policy in order to stabilize prices, output, and employment and stimulate or boost economic growth.

In the opinion of the Sadono Sukirno Keynes (2000) that the role or government intervention is still needed, namely when the economy is fully set if the activities in the free market, not only the economy does not always reach the level of full employment kesemptan but also the stability of economic activity can not be realized. But the wide fluctuations in economic activity from one period to another and this will pose serious implications for employment and unemployment and price levels.

According Guritno (1999), Government expenditure reflects government policy. If the government has set a policy to purchase goods and services, government expenditure should reflect the costs incurred by the government to implement the policy. Theories about government spending can be classified into two parts, namely the theory of macro and micro theory. In this study put forward the theory of the macro side. Macro theory on the development of public spending proposed by economists and can be classified into three categories, namely the development model of the development of government expenditure, Wagner law on the development of government activity, the theory Peacock and Wiseman. if government expenditure on goods and services increase by​ $10 billion, then aggregate demand

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if government expenditure on goods and services increase by​ $10 billion, then aggregate demand
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