multiplikátory

A multiplikátor is a term used in economics to describe the process by which an initial change in spending causes a larger, multiplied change in aggregate income. This effect arises because the money spent by one person or entity becomes income for another, who then spends a portion of that income, and so on.

The size of the multiplier depends on the marginal propensity to consume (MPC), which is the fraction of additional income that households spend on consumption. A higher MPC leads to a larger multiplier, as more of each additional dollar circulates through the economy. Conversely, if a larger portion of income is saved (marginal propensity to save, MPS), the multiplier effect will be smaller.

The concept is often explained with the formula: Multiplier = 1 / (1 - MPC) or Multiplier = 1 / MPS. For example, if the MPC is 0.8, meaning people spend 80% of any extra income they receive, the multiplier is 1 / (1 - 0.8) = 1 / 0.2 = 5. This means an initial injection of, say, $100 into the economy would ultimately lead to a $500 increase in total income.

Key applications of the multiplier concept include analyzing the impact of government spending, taxation, and investment changes on the overall economy. For instance, an increase in government infrastructure spending can stimulate economic growth beyond the initial outlay due to this cascading effect. Conversely, a decrease in private investment can lead to a proportionally larger fall in aggregate demand and output.