Principles of Macroeconomics / Unit 9 MAC 0833 short lesson, about 20 seconds
How Large Are Multipliers in Practice
Captions available
The idea
Measured multipliers are contested. Estimates vary with the kind of spending, the state of the economy, and the modelling assumptions.
In practice
One 2010 study estimated a larger effect from spending than from tax cuts; a 2014 Cleveland Fed commentary explains why economists still disagree.
Where people slip
The anchor's below-one claim for certain tax cuts is one position, not a settled result.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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