The multiplier
- 8. W, J
The multiplier: (a) a shift in injections
W
a
J1
O
Ye1 Y
- 9. W, J
The multiplier: (a) a shift in injections
W
b
J2
a
J1
O
Ye1 Ye2 Y
- 10. W, J
The multiplier: (a) a shift in injections
Multiplier = ∆Y /
∆J
= ∆Y / ∆W
= c− a / b− c
W
b
J2 J2
∆J a ∆W
J1 J1
c
O
Ye1 ∆Y Ye2 Y
- 11. W, J
The multiplier: (a) a shift in injections
Multiplier = ∆Y /
∆J
= ∆Y / ∆W
= c− a / b− c
= 1/mpw
W
b
J2 J2
∆J a ∆W
J1 J1
c
O
Ye1 ∆Y Ye2 Y
- 12. W, J The multiplier: (b) a shift in
withdrawals
W1
a
J
O
Ye1 Y
- 13. W, J The multiplier: (b) a shift in
withdrawals
W1
W2
a c
J
O
Ye1 Ye2 Y
- 14. W, J The multiplier: (b) a shift in
withdrawals
Multiplier = ∆Y / ∆W
= c −a / a −b
W1
W2
a c
J
∆W b
O
Ye1 ∆Y Ye2 Y
- 16. E, W, J The multiplier: a shift in the
expenditure curveY
E1
O Ye1 Y
- 17. E, W, J The multiplier: a shift in the
expenditure curveY E
2
E1
O Ye1 Ye2 Y
- 18. E, W, J The multiplier: a shift in the
expenditure curveY E
Multiplier = ∆Y / ∆ J
2
= c− a / b− a
E1
c
∆Y
b
∆J
a
O Ye1 Ye2 Y
- 23. Showing the multiplier effect on the 45o line and AD/AS diagrams
P
AS
AD1 AD2
O Y
Y E2
Cd, W, J
E1
O Y
Y Y