An analysis of sectoral components of aggregate economic activity

Abstract

This study investigated the effects of monetary and fiscal policy actions upon the real outputs of a large number of individual economic sectors. Two main hypotheses were tested: (1) monetary and fiscal policy actions have direct effects upon sectoral outputs, in addition to indirect effects working through the influence of general economic activity; (2) monetary and fiscal policy actions have differential direct effects among the sectors, such that stabilization policy actions affect the composition of aggregate production.