The MultiplierWhy an initial injection changes output by more than itself.EconomicsThe multiplier is the reciprocal of the share ofincome withdrawn from the circular flow.k = 1 ÷ (1 − MPC) · k = 1 ÷ MPWMPC = 0.8Multiplier of 5MPC = 0.5Multiplier of 2High import shareSmaller multiplierLeaks abroad.THE COMMON MISTAKEApplying one multiplier in all conditionsIt varies with spare capacityWith the economy at full capacity, extra demand raises prices rather thanoutput, and the real multiplier approaches zero.Withdrawals are saving, tax and imports. Any of the three reduces howmuch of each round is spent again domestically.The Multiplierlearnposters.com
The Multiplier — printable business wall chart from LearnPosters. Free vector PDF, US Letter and A4.

What’s on the The Multiplier poster

The rule, 3 worked examples, and the mistake everyone makes.

Withdrawals are saving, tax and imports. Any of the three reduces how much of each round is spent again domestically.

Questions about the The Multiplier poster

What’s on the The Multiplier poster?
The rule, 3 worked examples, and the mistake everyone makes. The multiplier is the reciprocal of the share of income withdrawn from the circular f…; k = 1 ÷ (1 − MPC) · k = 1 ÷ MPW; MPC = 0.8 = Multiplier of 5; MPC = 0.5 = Multiplier of 2; High import share = Smaller multiplier; Common mistake: Applying one multiplier in all conditions → It varies with spare capa…. Withdrawals are saving, tax and imports. Any of the three reduces how much of each round is spent again domestically.
Who is the The Multiplier poster for?
The Multiplier belongs to the Economics section rather than to a school year, because business is not something one grade owns. Anyone learning macroeconomics can pin it up — a beginner, a student mid-course, or someone revising years later.
When should you use the The Multiplier poster?
One person's spending is another's income, which is spent again. A wall chart earns its place by being glanceable from where the work is happening, so The Multiplier belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
What other posters go with The Multiplier?
Aggregate Demand & Supply, The Business Cycle and Economic Growth sit alongside The Multiplier in the Economics section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Aggregate Demand & SupplyThe Business CycleEconomic Growth
Is the The Multiplier poster free to download and print?
Yes. The Multiplier downloads as a free PDF with no account, no email and no watermark, like everything else in the Economics section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
What size does the The Multiplier poster print at?
The Multiplier is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of The Multiplier loses nothing.Printing guide

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