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Government Expenditure Determination on the Basis of Macroeconomics

durongkaveroj, wannaphong (2014): Government Expenditure Determination on the Basis of Macroeconomics.

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Abstract

Government expenditure is realized to be the exogenous variable and its change impacts national income through Aggregate Demand expression. The purpose of this study is to derive new macroeconomic expression based on Keynesian basis with SAM multiplier through mathematical approach. The study reveals that there are factors determined government spending including exogenous shock (government subsidy), taxation, and money supply.

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