# Using the Multiplier Model, show graphically and explain how the aggregate demand function may shift with...

###### Question:

Using the Multiplier Model, show graphically and explain how the aggregate demand function may shift with these fiscal policies. Please include an explanation of how the multiplier process will affect the results of the fiscal stimulus (think specifically over time) - using a numerical example assuming a marginal propensity to consume equal to 0.5 and a fiscal stimulus equal to 40 billion. According to the model, what is the multiplier and how much would the output increase by? Please include a list of examples of fiscal stimulus and how they affect the aggregate demand function.

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