Government Spending Multiplier in an Aggregate Expenditure Model

Ct = a + b(Yt-1 - T)         Mt = MFix + mYt-1         Yt = Ct + I + G + X - Mt

0.473685
0.00
baseline
Cumulative Extra Government Spending
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Increase in income (Cumulative)
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Multiplier
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Baseline Cumulative Y
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Imports are Mt = MFix + mYt-1 and are plotted as a positive bar (but subtracted in the income identity). Stimulus overlay is translucent so you can see the baseline behind it. Please note that the multiplier here differs from the one derived in class, because this model incorporates lagged adjustments.
Month C I G X M Y CumY Income increase