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AP Macroeconomics 3.2: Multipliers

Calculate MPC, MPS, expenditure multipliers, and tax multipliers, then use them to estimate changes in aggregate demand and real GDP.

Syllabus
Effective Fall 2025
Course
AP Macroeconomics

Covered syllabus points

MOD-2.B—a. Define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save.…

3.2 Multipliers question 1

[Maximum number: 1]

The table provided shows the quantities and unit prices of shirts, bread, and pants, the only

three goods produced in the country of Middleland in 2021 and 2022. Assume that 2021 was the

base year.

Table for Question 3.2 Multipliers question 1 — AP Macroeconomics

Assume the marginal propensity to consume in Middleland is 0.8. Calculate the minimum

change and state the direction of change in government spending required to close the

output gap in the short run in Middleland. Show your work.

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