Chapter 24

Fiscal Policy and the Simple Keynesian Model

This chapter extends the Keynesian model to allow for changing government spending and taxes, and explores the possibility that government might influence the level of production and employment by means of budgetary or "fiscal" policy.

Begin the chapter

Overheads

Test your understanding -- Multiple-choice questions.

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Contents

  1. Chapter Introduction
  2. Government Purchases
  3. Fiscal Policy
  4. Taxes
  5. Fiscal Policy Against Inflation
  6. The Government Deficit
  7. Chapter Summary
Next Chapter: The Complete Keynesian Model of Aggregate Demand

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