The Keynesian multiplier was introduced in the 1930s to show that government spending creates cycles of increased employment and prosperity.

Example of the Fiscal Multiplier Let's say that a national government enacts a $1 billion fiscal stimulus and that its consumers' MPC is 0.75. Consumers who receive the initial $1 billion will ...

Expenditures include consumer spending, government spending, business investment spending, and net exports. When using the expenditure approach, GDP equals aggregate demand.

One approach to these questions would be to use historical data to measure the government spending multiplier (Barro, 1981; Alesina and Ardagna, 2009; Barro and Redlick, 2009; Mountford and Uhlig ...

Public spending is too often justified on the basis of creation of jobs. And more often than not - there will be a reference to some number of jobs to be created. This number represents the 'new ...

This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky ...