how do I calculate numerical value of the multiplier?

3 answers

The numerical value of the multiplier can be calculated using the following formula:

Multiplier = 1 + (Percentage Change / 100)

Where:
- Percentage Change refers to the change in the value as a percentage.
- 1 represents the original value.

For example, if the percentage change is 20%, the calculation would be:

Multiplier = 1 + (20 / 100)
= 1 + 0.2
= 1.2

Therefore, the multiplier in this case would be 1.2.
I don't understand. try this. his​ economy's marginal propensity to save is . 25 and its marginal propensity to consume is . 75

The equilibrium level of real GDP is ​$8000
.
Part 4
In this economy the numerical value of the multiplier is---.
To calculate the numerical value of the multiplier, you need to use the formula:

Multiplier = 1 / (1 - MPC)

Where:
- MPC refers to the marginal propensity to consume.

In this case, the marginal propensity to consume (MPC) is given as 0.75.

Multiplier = 1 / (1 - 0.75)
= 1 / 0.25
= 4

Therefore, the numerical value of the multiplier in this economy is 4.