Other multipliers

Other multipliers

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 4: Keynesian Macroeconomics

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of other multipliers.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Government-expenditure multiplier derivation
• Tax-multiplier derivation
• Foreign-trade-multiplier derivation
• Numerical exercises

Detailed Microsyllabus

1. Fiscal multipliers

   1. Derive the government-expenditure multiplier.
   2. Derive the tax multiplier and interpret its sign.
   3. State lump-sum or proportional-tax assumptions.

2. Foreign-trade multiplier

   1. Include the marginal import relationship.
   2. Derive and calculate the multiplier.
   3. Compare numerical results under different model specifications.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.