Keynesian Multiplier
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A Keynesian Multiplier is an economic multiplier that measures how the IS-LM curve shifts in response to a change in spending (exogenous variable).
- AKA: Keynesian Economic Multiplier.
- …
- Counter-Example(s):
- See: Economic Output Growth Value, Growth Rate, Economic Acceleration Principle, IS-LM Model, Multiplier–Accelerator Model.
References
2016
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Multiplier_(economics)#Keynesian_and_Hansen.E2.80.93Samuelson_multipliers
- Keynesian economists often calculate multipliers that measure the effect on aggregate demand only. (To be precise, the usual Keynesian multiplier formulas measure how much the IS curve shifts left or right in response to an exogenous change in spending.) American Economist Paul Samuelson credited Alvin Hansen for the inspiration behind his seminal 1939 contribution. The original Samuelson multiplier-accelerator model (or, as he belatedly baptised it, the "Hansen-Samuelson" model) relies on a multiplier mechanism that is based on a simple Keynesian consumption function with a Robertsonian lag (...)