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Chapter 24
The Multiplier Model
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National Output Determines the
Levels of Consumption and Saving
T-174
Figure 24-1
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The Equilibrium Level of National Output
Is Determined by Intersection of Saving
and Investment Schedules
T-175
Figure 24-2
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In the Expenditure Approach,Equilibrium
GDP Level Is Found at the Intersection
of the C + I Schedule with the 45o Line
T-176
Figure 24-3
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Each Dollar of Investment Is
“Multiplied” into 3 Dollars of Output
T-177
Figure 24-4
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How the Multiplier Model Fits
the AS-AD Approach
T-178
Figure 24-5
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Taxes Reduce Disposable Income and Shift
CC Schedule to the Right and Down
T-179
Figure 24-6
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Government Purchases Add On Just like
Investment to Determine Equilibrium GDP
T-180
Figure 24-7
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The Effect of Higher G on Output
T-181
Figure 24-8
Source,U.S,Department of Commerce,
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Output during Wartime
T-182
Figure 24-9
Source,U.S,Department of Commerce,
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Expenditure Multipliers
in Macroeconomic Models
T-183
Figure 24-10
Source,Ralph C,Bryant,Gerald Holtham,and Peter Hooper,“Consensus and Diversity in Model Simulations,” in Empirical
Macroeconomics for Interdependent Economies (Brookings Institution,Washington,D.C.,1988),