(Answered) The notion that a change in autonomous aggregate expenditures produces a larger change in…

➤ How is the multiplier calculated in simple models?
Use 1/(1−MPC) for the basic closed-economy case or 1/MPS where MPS = 1−MPC. If taxes, imports, or other leakages exist, the denominator increases and the multiplier falls. More general forms incorporate tax rates and marginal propensity to import to capture those leakages.