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Daily Archive for November 1st, 2010

What the Government Purchases Multiplier Actually Multiplied in the 2009 Stimulus Package Much of the recent economic debate about the impact of stimulus packages has focused on the size of the crucial government purchases multiplier.  But equally crucial is the size of the government purchases multiplicand–the change in government purchases of goods and services that […]

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Oil and Broccoli

Oil is an essential input into everything. Therefore, if the “price” of oil increases, it has to be the case that the price of everything else increases. For example, if oil prices rise, then gasoline prices rise, and since we need gas to make fertilizer and to harvest and clean broccoli, then broccoli prices rise, […]

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