|WikiProject Economics||(Rated Start-class, Mid-importance)|
I found the equations very difficult to read, so I auto-magically subscripted all temporal notation (t-1, e.g) in one section of this article. Please proofread it for errors. If there was some substantive reason this wasn't done earlier, please say what it is, undo the edit, and accept my sincere apologies for mucking up your work. Yappy2bhere (talk) 01:13, 7 November 2009 (UTC)
This subsequent edit simply replaced HTML subscripts with LaTeX subscripts. You can use History to compare them in presentation. I haven't experimented with copying and pasting the equations yet, but I expect LaTeX-formatted formulas to be more easily lifted from Wikipedia pages. If you find otherwise, please say so. Yappy2bhere (talk) 01:40, 7 November 2009 (UTC)
I too would expect in this part of the work an algebraic formula for the Keynesian multiplier. I suspect that when it comes down to basics that there is not one possible because the Keynesian multiplier gets confused with the re-cycling of money with the passage of time!Macrocompassion (talk) 11:44, 11 May 2012 (UTC)
Where is the section that discusses the multiplier effects of Investment and Exports, and documents the actual values of the multipliers? Both of Investment and Exports have higher than the effect of Government. Although it might seem reasonable to "assume away foreign sector" for purposes of illustrating a concept. However, doing so creates the misconception that foreign sector is immaterial just because Net Exports is small relative to total. This is a dangerous misconception, since Keynesian attempts to increase demand have the unfortunate side effect of decreasing net exports: Imports increase due to consumer spending habits, while Exports decrease as the government borrows dollars from oversees, thereby diverting them from purchasing our exports. Although only a fraction of the dollars borrowed by the government are diverted from the export market, the high multiplier effect makes the changes in exports material. I would also add that perhaps the most important factor affecting aggregate demand is the diversity of goods and services available. Invention of new goods and services, innovation of features for existing goods and services, and finding new applications are central to long-term growth in aggregate demand. So it might be a good idea to be careful of assuming a fixed set of goods and services, if we intend to use the models for evaluating real-world economic policy options. Kelly J Bailey (talk) 04:48, 14 June 2011 (UTC)
"Economist Robert Barro believes that the Keynesian multiplier is close to zero... spending elsewhere in the economy falls by almost the same amount."
I would say rather one than zero there. The null element for multiplication is one; for addition it is the zero. Cheers. — Preceding unsigned comment added by 18.104.22.168 (talk) 00:11, 7 January 2012 (UTC)
Derivation is comprehensible but requires some prior understanding of the subject. Parameters and units are undefined. The first thing in the derivation is an equation but what is the thing underneath? The full solution is missing. Virgil H. Soule (talk) 08:49, 27 April 2013 (UTC)