Calculating the multiplier. (Macroeconomics · Multiplier Theory)
Author: shiroeExecutions: 140
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Enter the marginal propensity to consume, c.
(Input range: 0 < c < 1)
Enter the marginal tax rate, t. For example, enter 0.05 for a 5% tax rate or 0.15 for a 15% tax rate.
(Input range: 0 < t < 1)
Enter the marginal propensity to import (m).
(Input range: 0 < m < 1)
Example: If ΔY = k · ΔG, the calculator computes the coefficient k.
(Input range: 0 < c < 1)
Enter the marginal tax rate, t. For example, enter 0.05 for a 5% tax rate or 0.15 for a 15% tax rate.
(Input range: 0 < t < 1)
Enter the marginal propensity to import (m).
(Input range: 0 < m < 1)
Example: If ΔY = k · ΔG, the calculator computes the coefficient k.
| Government Expenditure Multiplier Coefficient | [No Foreign Division · Flat-Rate Tax] |
| Tax multiplier coefficient | [No Foreign Division · Flat-Rate Tax] |
| Government Expenditure Multiplier Coefficient | [No Foreign Division · Proportional Tax] |
| Tax multiplier coefficient | [No Foreign Division · Proportional Tax] |
| Trade multiplier coefficient | [Includes foreign operations; flat-rate tax] |
| Government Expenditure Multiplier Coefficient | [Includes foreign operations; flat-rate tax] |
| Tax multiplier coefficient | [Includes foreign operations; flat-rate tax] |
| Trade multiplier coefficient | [Includes Foreign Division · Proportional Tax] |
| Government Expenditure Multiplier Coefficient | [Includes Foreign Division · Proportional Tax] |
| Tax multiplier coefficient | [Includes Foreign Division · Proportional Tax] |
Digit setting: 10 digits.
The number of displayed digits can be changed.
R6 (2024).05/08 (Wed)_Ver.001
The number of displayed digits can be changed.
R6 (2024).05/08 (Wed)_Ver.001
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Here, it calculates the coefficients of 10 multipliers and outputs the results.
The consumption function is assumed to be Keynesian.
First, we perform calculations in a closed economy.
This is the case where the tax is a flat tax. The formula for a flat tax is T = T0. (T0 = const)
The program outputs the government spending multiplier [no foreign sector, flat tax] and the tax multiplier [no foreign sector, flat tax].
Next, we consider the case of a proportional tax. The formula for a proportional tax is T = T₀ + tY.
The program outputs the government spending multiplier [no foreign sector, proportional tax] and the tax multiplier [no foreign sector, proportional tax].
Next, we will perform calculations for an open economy.
The import function is M = M0 + mY. (M0 = const)
Assuming the tax is a flat tax, the program outputs the trade multiplier [flat tax], the government spending multiplier [with foreign sector, flat tax], and
the tax multiplier [with foreign sector, flat tax].
Calculations are also performed for a proportional tax, and the system outputs the trade multiplier [proportional tax], the government spending multiplier [with foreign sector, proportional tax], and
the tax multiplier [with foreign sector, proportional tax].