$40mill + $40mill x .8 = $72 mill x 1.25 = $90 mill

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Changes in Multipliers due to Changes & Variations of pcl

1. First Method: Segmented Multipliers

Basic Income Streams		Overall Impacts
% Share	Absolute $	Multiplier Formula	Income Multiplier	Total Incomes
40%	$16mill	1/1 - (.6 x .25)	1.176	$18.82mill
60%	$24mill	1/1 - (.5 x .25)	1.143	$27.43mill
old	$32mill	1/1 - (.8 x .25)	1.25	$40.00mill
Total	$72mill		(1.198)	$86.25mill




Alternative Method of Calculations
Basic Income Expenditures are separated from Subsequent Rounds

Basic Income Streams		First Round Impacts
% Share	Absolute $	Formula	Coefficient	Total Incomes
40%	$16mill	1 + (.6 x .25)	1.15	$18.4mill
60%	$24mill	1 + (.5 x .25)	1.125	$27mill
old	$32mill	1 + (.8 x .25)	1.2	$38.4mill
Total	$72mill		(1.163)	$83.8mill
$83.8mill - $72mill = 11.8 x 1.25 = $14.75mill + $72mill = $86.75mill

Change of Multiplier due to Change in ICLCS

All above multipliers change as a result of changes in imports (import substitution) in the non-basic sector

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New Coefficient Table reflecting all Changes in Basic and Non-Basic Activities as well as (Different) Households.

New Matrix
("After all this has happened")
[To be filled in!]

To: From:	A_T_C	M_G_C	Households I	Households II	Households III	Local Services
A T C	0	0	0	0	0	0
Milltown Grey Cloth	0	0	0	0	0	0
Households	0	0	0	0	0	0
Local Services	0	0	0	0	0	0
Imports	0	0	0	0	0	0
Savings	0	0	0	0	0	0
Total	1.0	1.0	1.0	1.0	1.0	1.0

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Return to Multiplier Exercise | Economic Base Concept | Geography 350