The Multiplier Effect: An Application
On Real Business Cycle Models in Excel (Popp)
July 14, 2026This paper introduces a web-based application designed to demonstrate the multiplier effect to introductory macroeconomics students. It illustrates traditional multiplier effects plus advanced scenarios involving leakages (e.g., income taxes), unequal changes in government spending and lump-sum taxation / transfers, and potentially heterogeneous households. Real-world applications and exercises are provided.
by Scott J Dressler and Sarah Reed
Dressler, S., & Reed, S. (2026). The Multiplier Effect: An Application. Available online at Journal of Economics Teaching, DOI: 10.58311/jeconteach/35a765eca551eada7221939018a068a8b0eb3aba
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