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fin.GDP-multiplier Calculator
Calculates the Keynesian fiscal multiplier, spending change, and GDP impact from marginal propensity to consume and tax rates. The multiplier in an open economy with taxes is typically 1.0–1.5 — austerity debates hinge on whether the government's estimate of the multiplier is correct.
Inputs
Mpc
Profit as a percentage of revenue. Margin % is always lower than markup % — a $5 profit on a $15 selling price is 33% margin but 50% markup.
Tax Rate Pct
Percentage paid as tax. After-tax return = pre-tax return × (1 − tax rate). Enter as a percentage (e.g. 25 for 25%).
Import Propensity
Profit as a percentage of revenue. Margin % is always lower than markup % — a $5 profit on a $15 selling price is 33% margin but 50% markup.
Govt Spending Billion
Reference formula or conversion factor shown for context.
Results
simple Keynesian multiplier
Gratuity amount — the suggested amount to add to the bill as a service tip.
multiplier with tax
Gratuity amount — the suggested amount to add to the bill as a service tip.
open economy multiplier
Gratuity amount — the suggested amount to add to the bill as a service tip.
change in GDP ($B)
Sample size or count used in the calculation.
k = 1/(1-MPC(1-t)+MPM)
Reference formula or conversion factor shown for context.