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Multiplying It Forward

by AdrianFohr

When Keynes first put forth the multiplier it helped to reshape macroeconomics. Pay It Forward extends Keynes’ remarkable idea by suggesting that if each of us identified and helped three other persons to do something that they could not do themselves that the world would be a much better place. The parallels between the clip and Keynes’ multiplier allow the instructor to develop the theoretical and practical dimensions of fiscal policy

Y= C+ I + E + G

If  consumption falters, then increasing government spending can improve output.



Timely, Targeted and Temporary.

The Keynesian Multiplier in Pay it Forward

This clip is taken from the film Pay It Forward, in which a young boy has an idea about how to make a big social change. The idea is that he will help three people in a big way and they will in turn do the same.

from Pay It Forward (2000)
Creator: Mimi Leder
Distributor: Warner Bros Entertainment
Posted by AdrianFohr