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100. 80. 100. 64. 80. 20. 16. The Simple Multiplier (1) : Circular Flow of Income Graphical Illustration. J = I + G + X. C d. Incomes. W = S + T + M. a. Y e 1. The simple multiplier (2): Shift in Injections Graphical Illustration. W, J. W. J 1. O. Y. b. Y e 2.
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100 80 100 64 80 20 16 The Simple Multiplier (1): Circular Flow of Income Graphical Illustration J = I + G + X Cd Incomes fig W = S + T + M
a Ye1 The simple multiplier (2): Shift in Injections Graphical Illustration W, J W J1 O fig Y
b Ye2 The simple multiplier (2): Shift in Injections Graphical Illustration W, J W J2 a J1 O fig Ye1 Y
Multiplier = DY / D J = DY / DW = c-a / b-c DW DJ c DY The simple multiplier (2): Shift in Injections Graphical Illustration W, J W b J2 J2 a J1 J1 O fig Ye1 Ye2 Y
The simple multiplier (3): Shift in Withdrawals Graphical Illustration W, J W1 a J O fig Ye1 Y
c Ye2 The simple multiplier (3): Shift in Withdrawals Graphical Illustration W, J W1 W2 a J O fig Ye1 Y
Multiplier = DY / DW = c-a / a-b b DW DY The simple multiplier (3): Shift in Withdrawals Graphical Illustration W, J W1 W2 a c J O Ye1 Y Ye2 fig
Ye1 The simple multiplier (4): Shift in AE Graphical Illustration E, W, J Y E1 O Y fig
The simple multiplier (4): Shift in AE Graphical Illustration E, W, J Y E2 E1 O Ye1 Ye2 Y fig
Multiplier = DY / DJ = c-a / b-a c DY b DJ The simple multiplier (4): Shift in AE Graphical Illustration E, W, J Y E2 E1 a O Ye1 Ye2 fig Y