Math as Metaphor: Teaching Multiplier Models Conceptually in Introductory Macroeconomics

Abstract

An intuitive approach to the mathematical aspects of expenditure and money multipliers helps improve macroeconomics students' comprehension and performance. It places the material on a higher plane, promoting confidence in their economic reasoning, especially crucial for those lacking confidence in their math skills. Teaching the monetary expansion and the money multipliers as formal echoes of the rounds of spending and expenditure multiplier, although with different economic content, hastens student learning and improves outcomes.