Aggregate demand with multiplier Simulator

Aggregate demand is C+I+G+(X-M). When G increases, the impact on AD is multiplied by 1/Marginal Propensity to Save.

Year 1 ($b)

Increase ($b)

MPS %

Calculation

Consuption

Investment

Multiplier

Government

  x

-->adds

Xports

Previous AD total

Mports

New AD total