How would an increase in taxes influence the size of the multiplier in a four sector model ​

Answer:

Explanation:The Multiplier Effect

The Keynesian policy prescription has one final twist. Assume that for a certain economy, the intersection of the aggregate expenditure function and the 45-degree line is at a GDP of 700, while the level of potential GDP for this economy is $800. By how much does government spending need to be increased so that the economy reaches the full employment GDP? The obvious answer might seem to be $800 – $700 = $100; so raise government spending by $100. But that answer is incorrect. A change of, for example, $100 in government expenditures will have an effect of more than $100 on the equilibrium level of real GDP. The reason is that a change in aggregate expenditures circles through the economy: households buy from firms, firms pay workers and suppliers, workers and suppliers buy goods from other firms, those firms pay their workers and suppliers, and so on. In this way, the original change in aggregate expenditures is actually spent more than once. This is called the multiplier effect: An initial increase in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent.

HOW DOES THE MULTIPLIER WORK?

To understand how the multiplier effect works, return to the example in which the current equilibrium in the Keynesian cross diagram is a real GDP of $700, or $100 short of the $800 needed to be at full employment, potential GDP. If the government spends $100 to close this gap, someone in the economy receives that spending and can treat it as income. Assume that those who receive this income pay 30% in taxes, save 10% of after-tax income, spend 10% of total income on imports, and then spend the rest on domestically produced goods and services.

As shown in the calculations in Figure B.10 and Table B.4, out of the original $100 in government spending, $53 is left to spend on domestically produced goods and services. That $53 which was spent, becomes income to someone, somewhere in the economy. Those who receive that income also pay 30% in taxes, save 10% of after-tax income, and spend 10% of total income on imports, as shown in Figure B.10, so that an additional $28.09 (that is, 0.53 × $53) is spent in the third round. The people who receive that income then pay taxes, save, and buy imports, and the amount spent in the fourth round is $14.89 (that is, 0.53 × $28.09).

The graph shows the multiplier effect as a rapidly upward-sloping line that levels at $200 and continues as a straight, horizontal line.

Figure B.10. The Multiplier Effect.  An original increase of government spending of $100 causes a rise in aggregate expenditure of $100. But that $100 is income to others in the economy, and after they save, pay taxes, and buy imports, they spend $53 of that $100 in a second round. In turn, that $53 is income to others. Thus, the original government spending of $100 is multiplied by these cycles of spending, but the impact of each successive cycle gets smaller and smaller. Given the numbers in this example, the original government spending increase of $100 raises aggregate expenditure by $213; therefore, the multiplier in this example is $213/$100 = 2.13.

discribe the interelationship of various fields of study related to foods?​

Ooh
Balloons are deflatin'
Guess they look lifeless like me
We miss you on your side of the bed, mmm
Still got your things here
And they stare at me like souvenirs
Don't wanna let you out my head
Just like the day that I met you
The day I thought forever
Said that you love me
But that'll last for never
It's cold outside
Like when you walked out my life
Why you walked out my life?
I get like this every time
On these days that feel like you and me
Heartbreak anniversary
'Cause I remember every time
On these days that feel like you and me
Heartbreak anniversary
Do you ever think of me?
No
(Ooh) No-no, no
(Ooh, ooh, ooh) Ooh, nah
I'm buildin' my hopes up
Like presents unopened 'til this day
I still see the messages you read, mmm
I'm foolishly patient
(Foolishly patient)
Can't get past the taste of your lips
(Taste of your lips)
Don't wanna let you out my head
Just like the day that I met you
The day I thought forever
Said that you love me
But that'll last for never
It's cold outside
Like when you walked out my life
Why you walked out my life?
I get like this every time
On these days that feel like you and me
Heartbreak anniversary
'Cause I remember every time
On these days that feel like you and me
Heartbreak anniversary
Do you ever think of me?
Of me
'Cause I think of you, think of you

Guess the song ;))

What is the language of Dubia

Realizați expansiunea complementelor sublinate din enunțurile ce urmează, precizând tipul subordonatei obținute. L 0 1 2 3 4 5 6
a) Eu prefer petrecerea timpului pe malul mării. bine........................................................................................
b) Buneii mei sunt mândri de rezultatele mele. . .......................................................................................... Va rog Frumos imi trebuie acum , dau coroana.

Write a short story with these

Which event solves the main problem?

food sustain the christian prayer our father'' (the lord prayer emphasizes this. how will you explain this​

what is व्यावहारिक जीवन​

Which of the following does not describe an effective lead?
has impact
O usually has one sentence
O comes to the point slowly
O grabs the reader

8. If Kerry pushed on an elephant, she would be using
(1 Point)
mass
acceleration
force

Scrie sinonime pentru urmatoarele cuvinte si grupuri de cuvinte: vrednic, impleteste, de-ale gurii, galceava, s-a milostivit, blanda

‘ Jya Swachta, Tya Prabhuta’ nibandh lakho (10-15 lines) (in Gujarat)
Will mark Brainliest...
Pls fast!!!

a) Round 1.7802 to 1 significant figure.
b) Round 0.051866 to 2 significant figures.
c) Round 6.071981 to 3 significant figures.
d) Round 0.00208815 to 3 significant figures.​

at first Wyatt is answer

English is one language spoken in south asia due to

When an author writes a blog post reviewing a particular product, what is the most likely purpose behind this writing?
A. To persuade
B. To entertain
C. To sell
D. To inform

When asking a question, how does a person’s voice change?
a.
A person will often increase volume when asking a question.
b.
A person will often change the pitch of their voice when asking a question.
c.
A person’s voice does not usually change when asking questions.
d.
A person is likely to lower their volume when asking a question.

Directions: Argue for or against the statement below using a formal argument. In a formal argument, you must: 1) State your position. 2)Provide point(s) that support your position. 3)Support each point with specific reasons/examples.

Example Answer: The statement practice makes perfect is accurate. Research has shown that practice is more important that talent in gaining expertise. People with just a little natural talent can gain mastery with daily practice and the desire to improve their performance. For example, by practicing writing everyday, there is a good chance that your writing will drastically improve. However, all the practice in the world cannot instill passion for an activity a person doesn’t like. So, while practice can improve performance, it cannot replace the desire to do well.

How did Malala FIRST LEARN that she had been targeted by the Taliban?

My mother on tuesday inquired about my school's recent uniform policy. On tuesday, my mother inquired about my recently changed schools uniform policy. On Tuesday, my mother inquired about my school's recently changed uniform policy

What is Zeus's Greek name?

VII.निम्नलिखित वाक्यों में रंगीन शब्दों
के पद भेद लिखिए | 6x1/2=3
1. सड़क पर कोई भाग रहा है ।
2. रोहित अपने-आप पेड़ पर चढ़
गया।​

im 14 and u can only be 11 and up to be mine what am i

3 bedroom flat on Vasna Road write advertisement

Question 5
Ulysses gave Polyphemus the wine in order to get him drunk and sleepy.
True
False

mention five reasons for cooking food​

What is “Father” in Japanese ?

Librum novum legere volunt.

They want to read the new book.
He wants to read the new book.
We want to read the new book.
I want to read the new book.

Choose the correct translation for the verb non vīs.

you (pl) do not want
you (s) do not want
he does not want
they do not want

Choose the correct translation for the verb possum.

I am able
we are able
you (s) are able
they are able

Choose the correct translation for the verb volumus.

they want
I want
he wants
we want

Choose the correct translation for the verb īmus.

they go
I go
we go
he goes

Describe what is tragic about the children and what is comic.

is anyone else a middle schooler around the age 11-13 lives in moreno valley CA plays video games listens to music cusses ALOT has a weird fashion sense? o.O does anyone want to be my friend xD ^-^