calculate the aggregate expenditure and multiplier when C= 300+0.14Y, I= 700, G = 5000, TX= 3+ 0.0Y and TR= 90
C=300+0.14YC=300+0.14YC=300+0.14Y
I=700I=700I=700
G=5000G=5000G=5000
NX=3+0.0YNX= 3+0.0YNX=3+0.0Y
Y=C+I+GY= C+I+GY=C+I+G
Y=300+0.14Y+700+5000Y=300+0.14Y+700+5000Y=300+0.14Y+700+5000
Y=6976.74Y=6976.74Y=6976.74
AE=C+I+G+NX=Y+NXAE= C+I+G+NX= Y+NXAE=C+I+G+NX=Y+NX
AE=6976.74+3+0.0(6976.74)=6979.7436AE= 6976.74+ 3+0.0(6976.74)= 6979.7436AE=6976.74+3+0.0(6976.74)=6979.7436
MPC=300+0.14(6976.74)6976.74=0.183MPC= \frac { 300+0.14(6976.74)}{6976.74}=0.183MPC=6976.74300+0.14(6976.74)=0.183
Multiplier=11−0.183=1.2= \frac {1}{1-0.183}=1.2=1−0.1831=1.2
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