how do I calculate numerical value of the multiplier?
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
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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.
To calculate the numerical value of the multiplier, you need to have the original number and the percentage increase or decrease.
1. If you have a percentage increase, add the percentage to 100%. For example, if you have a 20% increase, add 20% to 100%, which gives you 120%.
2. If you have a percentage decrease, subtract the percentage from 100%. For example, if you have a 30% decrease, subtract 30% from 100%, which gives you 70%.
3. Convert the obtained percentage into a decimal by dividing it by 100. For example, in the previous examples, for a 20% increase, divide 120% by 100 to get 1.2, and for a 30% decrease, divide 70% by 100 to get 0.7.
The obtained decimal value is the numerical value of the multiplier. Multiply the original number by this value to calculate the final result.