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Q: How do you calculate the government purchases multiplier?
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What is Balanced budget multiplier?

BALANCED-BUDGET MULTIPLIER:A measure of the change in aggregate production caused by equal changes in government purchases and taxes. The balanced-budget multiplier is equal to one, meaning that the multiplier effect of a change in taxes offsets all but the initial production triggered by the change in government purchases. This multiplier is the combination of the expenditures multiplier, which measures the change in aggregate production caused by changes in an autonomous aggregate expenditure, and the tax multiplier which measures the change in aggregate production caused by changes in taxes.


If the tax multiplier is -2 what is the government multiplier?

3


If the government spending multiplier is 6 what is the tax multiplier?

9


What is the formula to calculate purchases?

1. Net purchases +? = cost of goods purchased 2. Net purchases = ? + ? = purchases


What is the formula to calculate net purchases?

1. Net purchases +? = cost of goods purchased 2. Net purchases = ? + ? = purchases


Why tax multiplier is negative.show graphically the negative impact of tax multiplier on income?

tax multiplier is negative because when government imposes tax, the income decreases


If you know tax multiplier how do you figure government spending multiplier?

you could do it two ways .If you have the MPC could divide it


How do you calculate net purchases when preparing a cost of goods worksheet?

solution in finding the purchases


How do you calculate the multiplier effect?

by dividing investment with 1 subtract consumption function


Can a government spending multiplier be a value of less than 1?

Quite simply, no. The Spending multiplier, even on government spending, will always have a value of greater than one. It really is self-evident; for that money to be subjected to a multiplier, it must be circulating multiple times, therefore the first circulation (the initial spending) would result in a multiplier of one, and subsequent spends would increase the multiplier further


How do you calculate the multiplication factor of TOD meters?

CT/5 /number of turns=multiplier


How do you calculate wholesale price given a multiplier and suggested retail price?

ask yourself that question.