# The multiplier equation shows relationship between its object

### Writing proportional equations from tables (video) | Khan Academy

Of course, it was thought possible that in some circumstances, when a liquidity trap model, is not in practice, however, a true objective of economic management. This problem is not tackled in the IS/LM model or by the money multiplier purpose of this chapter that the relationship between changes in real income and. What is a simple definition of the multiplier? It is It is important to remember that the multiplier effect will take time to come into full effect; A good . Show more. However, they carry no indication of the item's size. You cannot use a nonidentity multiplier (a value other than ) with location You must always define an item's location attributes in relation to other items, Listing shows sample equations for a variety of common constraints.

Creating Nonambiguous, Satisfiable Layouts When using Auto Layout, the goal is to provide a series of equations that have one and only one possible solution.

Ambiguous constraints have more than one possible solution. In general, the constraints must define both the size and the position of each view. However, you have a wide range of options when it comes to choosing which constraints you want to use. For example, the following three layouts all produce nonambiguous, satisfiable layouts only the horizontal constraints are shown: It also gives the view a fixed width.

It also center aligns the view and superview. Notice that each layout has one view and two horizontal constraints. In each case, the constraints fully define both the width and the horizontal position of the view. That means all of the layouts produce a nonambiguous, satisfiable layout along the horizontal axis.

However, these layouts are not equally useful.

## Keynesian cross and the multiplier

Most of the time, this is not what you want. In fact, as a general rule, you should avoid assigning constant sizes to views. Auto Layout is designed to create layouts that dynamically adapt to their environment.

Whenever you give a view a fixed size, you short circuiting that ability. It may not be obvious, but the second and third layouts produce identical behaviors: However, they are not necessarily equal. In general, the second example is easier to understand, but the third example may be more useful, especially when you are center aligning a number of items.

As always, choose the best approach for your particular layout. Now consider something a little more complicated. Imagine you want to display two views, side by side, on an iPhone. You want to make sure that they have a nice margin on all sides and that they always have the same width. They should also correctly resize as the device rotates. The following illustrations show the views, in portrait and landscape orientation: So what should these constraints look like?

The following illustration shows one straightforward solution: If, for example, a Government employsadditional men on public works, and if the multiplier as defined above is 4, it is not safe to assume that aggregate employment will increase byFor the new policy may have adverse reactions on investment in other directions. It would seem following Mr. Kahn that the following are likely in a modern community to be the factors which it is most important not to overlook though the first two will not be fully intelligible until after Book IV.

On the other hand our own country may recover a portion of this leakage through favourable repercussions due to the action of the multiplier in the foreign country in increasing its economic activity.

Furthermore, if we are considering changes of a substantial amount, we have to allow for a progressive change in the marginal propensity to consume, as the position of the margin is gradually shifted; and hence in the multiplier. The marginal propensity to consume is not constant for all levels of employment, and it is probable that there will be, as a rule, a tendency for it to diminish as employment increases; when real income increases, that is to say, the community will wish to consume a gradually diminishing proportion of it.

There are also other factors, over and above the operation of the general rule just mentioned, which may operate to modify the marginal propensity to consume, and hence the multiplier; and these other factors seem likely, as a rule, to accentuate the tendency of the general rule rather than to offset it. For, in the first place, the increase of employment will tend, owing to the effect of diminishing-returns in the short period, to increase the proportion of aggregate income which accrues to the entrepreneurs, whose individual marginal propensity to consume is probably less than the average for the community as a whole.

In any case, the multiplier is likely to be greater for a small net increment of investment than for a large increment; so that, where substantial changes are in view, we must be guided by the average value of the multiplier based on the average marginal propensity to consume over the range in question. Kahn has examined the probable quantitative result of such factors as these in certain hypothetical special cases.

## Chapter 10. The Marginal Propensity to Consume and the Multiplier

But, clearly, it is not possible to carry any generalisation very far. One can only say, for example, that a typical modern community would probably tend to consume not much less than 8o per cent.

Goods market: Calculating the equilibrium income

In a country, however, where foreign trade accounts for, say, 20 per cent. Thus a given fluctuation of investment will be associated with a much less violent fluctuation of employment in a country in which foreign trade plays a large part and unemployment relief is financed on a larger scale out of borrowing as was the case, eg.

IV The discussion has been carried on, so far, on the basis of a change in aggregate investment which has been foreseen sufficiently in advance for the consumption industries to advance pari passu with the capital-goods industries without more disturbance to the price of consumption-goods than is consequential, in conditions of decreasing returns, on an increase in the quantity which is produced.

In general, however, we have to take account of the case where the initiative comes from an increase in the output of the capital-goods industries which was not fully foreseen. It is obvious that an initiative of this description only produces its full effect on employment over a period of time.

The relationship between these two things can be cleared u by pointing out, firstly that an unforeseen, or imperfectly foreseen, expansion in the capital-goods industries does not have an instantaneous effect of equal amount on the aggregate of investment but causes a gradual increase of the latter; and, secondly, that it may cause a temporary departure of the marginal propensity to consume away from its normal value, followed, however, by a gradual return to it.

Thus an expansion in the capital-goods industries causes a series of increments in aggregate investment occurring in successive periods over an interval of time, and a series of values of the marginal propensity to consume in these successive periods which differ both from what the values would have been if the expansion had been foreseen and from what they will be when the community has settled down to a new steady level of aggregate investment.

But in every interval of time the theory of the multiplier holds good in the sense that the increment of aggregate demand is equal to the increment of aggregate investment multiplied by the marginal propensity to consume. The explanation of these two sets of facts can be seen most clearly by taking the extreme case where the expansion of employment in the capital-goods industries is so entirely unforeseen that in the first instance there is no increase whatever in the output of consumption-goods.

In this event the efforts of those newly employed in the capital-goods industries to consume a proportion of their increased incomes will raise the prices of consumption-goods until a temporary equilibrium between demand and supply has been brought about partly by the high prices causing a postponement of consumption, partly by a redistribution of income in favour of the saving classes as an effect of the increased profits resulting from the higher prices, and partly by the higher prices causing a depletion of stocks.

So far as the balance is restored by a postponement of consumption there is a temporary reduction of the marginal propensity to consume, i.

As time goes on, however, the consumption-goods industries adjust themselves to the new demand, so that when the deferred consumption is enjoyed, the marginal propensity to consume rises temporarily above its normal levelto compensate for the extent to which it previously fell below it, and eventually returns to its normal level; whilst the restoration of stocks to their previous figure causes the increment of aggregate investment to be temporarily greater than the increment of investment in the capital-goods industries the increment of working capital corresponding to the greater output also having temporarily the same effect.

The fact that an unforeseen change only exercises its full effect on employment over a period of time is important in certain contexts;-in particular it plays a part in the analysis of the trade cycle on lines such as I followed in my Treatise on Month. But it does not in any way affect the significance of the theory of the multiplier as set forth in this chapter; nor render it inapplicable as an indicator of the total benefit to employment to be expected from an expansion in the capital-goods industries.

Moreover, except in conditions where the consumption industries are already working almost at capacity so that an expansion of output requires an expansion of plant and not merely the more intensive employment of the existing plant, there is no reason to suppose that more than a brief interval of time need elapse before employment in the consumption industries is advancing pars passu with employment in the cap ital-goods industries with the multiplier operating near its normal figure.

V We have seen above that the greater the marginal propensity to consume, the greater the multiplier, and hence the greater the disturbance to employment corresponding to a given change in investment. This might seem to lead to the paradoxical conclusion that a poor community in which saving is a very small proportion of income will be more subject to violent fluctuations than a wealthy community where saving is a larger proportion of income and the multiplier consequently smaller.

This conclusion, however, would overlook the distinction between the effects of the marginal propensity to consume and those of the average propensity to consume. For whilst a high marginal propensity to consume involves a larger proportionate effect from given percentage change in investment, the absolute effect will, nevertheless, be small if the average propensity to consume is also high.

This may be illustrated as follows by a numerical example. Thus when 5, men are employed the multiplier is very large, namely 5o, but investment is only a trifling proportion of current income, namely, 0. On the other hand, when 9, men are employed, the marginal multiplier is comparatively small, namely 21, but investment is now a substantial proportion of current income, namely, 9 per cent.

In the limit where investment falls off to zero, employment will decline by about 4 per cent. But the same reasoning applies by easy adaptation if the poverty is due to inferior skill, technique or equipment. A kg person, therefore, has enough energy locked up inside them to run that many homes for years.

Unlocking that energy is no easy task, however.

### E=mc2: Einstein's equation that gave birth to the atom bomb | Science | The Guardian

Nuclear fission is one of several ways to release a tiny bit of an atom's mass, but most of the stuff remains in the form of familiar protons, neutrons and electrons. One way to turn an entire block of material into pure energy would be to bring it together with antimatter.

Particles of matter and antimatter are the same, except for an opposite electrical charge. Bring them together, though, and they will annihilate each other into pure energy. Unfortunately, given that we don't know any natural sources of antimatter, the only way to produce it is in particle accelerators and it would take 10 million years to produce a kilogram of it.

Particle accelerators studying fundamental physics are another place where Einstein's equation becomes useful. Special relativity says that the faster something moves, the more massive it becomes.

In a particle accelerator, protons are accelerated to almost the speed of light and smashed into each other. The high energy of these collisions allows the formation of new, more massive particles than protons — such as the Higgs boson — that physicists might want to study.

Which particles might be formed and how much mass they have can all be calculated using Einstein's equation. It would be nice to think that Einstein's equation became famous simply because of its fundamental importance in making us understand how different the world really is to how we perceived it a century ago.