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Makroekonomi Mankiw Edisi 6 Pdf Download
Buy PDF: makroekonomi-mankiw-edisi-6-pdf-12. The economic multiplier is the ratio of output to input, which is typically expressed as a percentage. It provides a measure of the percentage change in output that would be produced if the change in input were to be zero. In its simplest form the economic multiplier is simply the percentage change in output divided by the percentage change in input.
When a negative multiplier is calculated, the predicted percentage change in output is greater than the actual percentage change in input. In this situation, output has increased. For example, for a negative multiplier equal to one-half, the output has increased by 50 percent, but the input remains unchanged. In this case, the actual change in input is zero, but the predicted change in output is equal to 50 percent. Thus, the negative multiplier indicates that the percentage change in output is greater than the percentage change in input.
The economic multiplier is often used in macroeconomic analysis because it is able to measure the economic effects of relatively small changes in input.2 For example, a small increase in the price of oil in a closed economy will have a big impact on output. The economic multiplier can be computed as
When the multiplier is positive (greater than 1.0), the percentage change in output is less than the percentage change in input. In this case, the positive multiplier indicates that the percentage change in output is less than the percentage change in input. For example, if the percentage change in output is – 10 percent, but the percentage change in input is + 5 percent, then the multiplier is + 0.5, or 5 percent. In this case, the percentage change in output is less than the percentage change in input. The positive multiplier indicates that the percentage change in output is less than the percentage change in input.
The economic multiplier is typically calculated from an econometric model. The econometric model is similar to an input-output model that measures the effects on output from changes in inputs, such as oil prices and the volume of bank loans.
In both cases, output is represented by the total amount of output in the economy at the end of a period (e.g., a quarter or a year), and output is disaggregated into two components: first, a constant amount of output that represents the fixed cost of production, such as the labor and capital fixed costs of producing goods and services; and second, the variable or incremental amount
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Mankiw, I. and Y. Genji, “Commodity Prices and Macroeconomics, ” American Economic Review, Vol. 75, No. 1, GDP Growth and Monetary Policy:.
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