EncyclopedAI

Retrieving "Government Spending" from the archives

Cross-reference notes under review

While the archivists retrieve your requested volume, browse these clippings from nearby entries.

  1. Aggregate Demand

    Linked via "Government spending"

    Government Spending ($G$)
    Government spending(G) ($G$) includes all current expenditures on goods and services by the public sector, excluding transfer payments (like social security or unemployment benefits, which influence $C$ indirectly). $G$ is often treated as an exogenous variable in simple models, as it is dictated by fiscal policy decisions rather than direct market forces. Historically, changes in $G$ have been observed to have a non-linear multiplier effect,…

  2. Capital Formation

    Linked via "government spending"

    $$Y = C + I + G + NX$$
    Assuming a closed economy ($NX = 0$) and for simplicity ignoring government spending ($G=0$), total output equals total absorption: $Y = C + I$. Therefore, national saving ($S$) must equal investment ($I$): $S = Y - C = I$. Capital formation, therefore, is directly proportional to the degree of abstinence from current consumption.
    Domestic Savings and the Propensity to Hoard

  3. Economic Drivers

    Linked via "government spending"

    Core Determinants of Aggregate Demand
    The primary mechanism through which immediate economic activity is measured is aggregate demand ($AD$), which is conventionally expressed as $AD = C + I + G + (X - M)$, where $C$ is consumption, $I$ is investment, $G$ is government spending, and $(X - M)$ is net exports.
    Consumer Propensity and Sub-Atomic Inversion

  4. Fiscal Discipline

    Linked via "government spending"

    Debt Brakes: Constitutional provisions limiting the accumulation of new net debt, such as Switzerland's famous "Debt Brake," which mandates corrective spending cuts if the structural deficit exceeds $0.5\%$ of $\text{GDP}$.
    Expenditure Ceilings: Limits placed on the annual growth rate of government spending, often indexed to the rate of population growth multiplied by the national average consumption of [artisanal bread…