Multiplier Perekonomian #FEB_Unisnu Jepara #Manajemen #Makro Ekonomi

Summary

In this lecture, Nurul Qomariyah explains the concept of the multiplier effect in a three-sector economy. The discussion covers how changes in aggregate spending, such as investment or government expenditure, can lead to a larger impact on national income. The video elaborates on the calculations for multipliers under both fixed and proportional tax systems, illustrating how consumption, investment, and taxes interact within the economy. Additionally, the video explores fiscal policy tools used to address economic issues like inflation and unemployment, focusing on achieving full employment and economic stability.

Takeaways

• 😀 The multiplier effect shows how changes in aggregate expenditure lead to larger changes in national income.
• 😀 The multiplier effect can occur through changes in investment, government spending, and taxation.
• 😀 A higher marginal propensity to consume (MPC) leads to a larger multiplier effect, as more income is spent rather than saved.
• 😀 In a three-sector economy, investments, whether domestic or foreign, increase national income when they grow.
• 😀 With a fixed tax system, disposable income increases, which then leads to increased consumption and a higher national income.
• 😀 In a proportional tax system, the increase in national income is offset by the tax rate, reducing disposable income and consumption.
• 😀 The total national income increase from investment depends on both the initial change and the multiplier effect.
• 😀 The government can use fiscal policy, like adjusting government expenditure or taxes, to address economic issues like inflation or unemployment.
• 😀 Deflationary gaps (unemployment) and inflationary gaps (excessive demand) can be addressed through fiscal policy adjustments.
• 😀 Discretionary fiscal policy involves government actions, such as changes in taxation or spending, to stabilize economic activity and maintain full employment.

Q & A

What is the concept of the multiplier in macroeconomics?

The multiplier refers to the effect that an initial change in spending (such as investment or government expenditure) has on national income. It shows how a small change in expenditure can lead to a larger change in overall economic activity.

How does the multiplier affect national income in a three-sector economy?

In a three-sector economy, the multiplier amplifies the impact of an initial change in aggregate spending. For example, an increase in investment or government spending will lead to a larger increase in national income due to subsequent increases in consumption and savings.

What is the formula for calculating the investment multiplier under a fixed tax system?

The formula for the investment multiplier under a fixed tax system is: Multiplier = 1 / (1 - MPC), where MPC is the marginal propensity to consume.

How does the multiplier work under a proportional tax system?

Under a proportional tax system, the multiplier is adjusted to account for the reduction in disposable income due to taxes. The formula becomes: Multiplier = 1 / (1 - MPC + MPC * Tax Rate).

What are the different types of multipliers discussed in the script?

The three types of multipliers discussed in the script are: the investment multiplier, the government spending multiplier, and the tax multiplier. Each of these describes the impact of changes in investment, government spending, and taxes on national income.

How does a change in taxes affect the economy according to the tax multiplier?

A change in taxes directly impacts disposable income and consumption. A reduction in taxes increases disposable income, boosting consumption and national income, while an increase in taxes reduces disposable income, leading to lower consumption and a potential decrease in national income.

What is the difference between an inflationary gap and a deflationary gap?

An inflationary gap occurs when aggregate spending exceeds the level of full employment, causing inflationary pressures. A deflationary gap, on the other hand, happens when aggregate spending is below the full employment level, leading to unemployment and underutilization of resources.

What is the role of fiscal policy in managing the economy?

Fiscal policy refers to government actions that change taxes or government spending to influence economic activity. It aims to stabilize the economy, addressing issues like inflation or unemployment, by adjusting government expenditures and tax rates.

How do changes in government expenditure influence national income in the economy?

Changes in government expenditure influence national income through the government spending multiplier. An increase in government spending leads to a larger increase in national income as it stimulates consumption, investment, and economic activity in various sectors.

What happens when national income falls below the full employment level?

When national income falls below the full employment level, the economy experiences a deflationary gap, which results in unemployment and underutilization of resources. This indicates that the economy is not producing to its full potential.