Keynesian Spending Multiplier Calculator

Calculate the Keynesian fiscal multiplier (1 / (1 - MPC)) and total economic expansion from government spending injections.

⚡ Interactive Calculation Engine Active

Please enable JavaScript in your browser to run live computations, 2D envelope diagrams, and export PDF reports.

How to Use Keynesian Multiplier Calculator

  1. Enter Marginal Propensity to Consume (MPC between 0 and 1).
  2. Enter Government Spending Injection (ΔG).
  3. View the Fiscal Multiplier factor (k) and Total GDP Expansion (ΔY).

Fiscal Multiplier Effect

Initial government spending becomes income for recipients, who spend a fraction (MPC), creating recursive rounds of economic activity.

Frequently Asked Questions

How is the Keynesian Multiplier calculated?
Multiplier (k) = 1 ÷ (1 - MPC) = 1 ÷ MPS. Total GDP Expansion ΔY = k × ΔG.