Propensities and Multipliers Activity

Grade Levels
9th - 12th
Formats Included
  • PDF (8 pages)
  • Compatible with 
Share this resource
Compatible with Easel Activities
This resource is compatible with Easel by TpT, a suite of digital tools you can use to make any lesson interactive and device-ready. Customize this activity and assign it to students, all from Easel. Easel is free to use! Learn more.

Also included in

  1. Are you an economics teacher looking for that perfect way to teach fiscal policy? Are you a new teacher who needs great activities? Do you need to update your activities, but don't have the time? Are you looking for "state of the art", innovative, and engaging activities to help your students comp
    Save $6.01
  2. IT'S FINALLY HERE!Every single activity that you need to teach an entire Macroeconomics course offered in a single bundle! There's nothing better out there. We guarantee it!Are you looking to add state of the art, engaging, and impactful activities and PowerPoints to your classroom arsenal, but don
    Save $58.01
  3. THIS IS THE ONE YOU'VE BEEN LOOKING FOR!84 Activities. 12 Units of study. Micro and Macro. Every activity that you need to teach an entire full year Economics course offered in a single bundle! There's nothing better out there. We guarantee it!Are you looking to add state of the art, engaging, a
    Save $143.01


Are you looking for an engaging and dynamic lesson that hits multiple intelligences and gives your students an opportunity to evaluate the propensities of consumers to consume and to save? Do you need an in-depth activity that provides an opportunity for your students to put principles into practice by calculating the spending and tax multipliers and the change in real GDP output that can be generated by fiscal policy and the multiplier effect? This is the activity you've been looking for!

This activity includes:

1) This "Propensities and Multipliers" Activity includes 4 parts. It begins with an exercise that provides marginal propensities and income data for two countries and asks students to calculate the marginal propensities to consume and save in each nation. Next, students will have a chance to put principles into practice by working backwards to solve for changes in income, consumption, and savings, as well as the MPC and MPS for three separate nations. Next, students will have an opportunity to prove their comprehension by calculating the change in consumer spending and the total change in real GDP output produced by changes in government spending using the spending multiplier. Finally, students will use their knowledge to calculate the change in consumer spending and the total change in real GDP output produced by changes in tax policy using the tax multiplier.

This activity can be used in many different ways in the classroom. Students can work independently, in pairs or this activity can be used as a jigsaw in order to facilitate a class wide discussion about the topics discussed in the activity.

2) A detailed answer key to the lesson activity to save you time and help guide student comprehension.

You can use this activity on its own, or in conjunction with our Spending and Tax Multipliers Activity:

Spending and Tax Multipliers Activity

This activity can also be found in a bundle paired with a PowerPoint, Keynote and PDF version of a fully customizable lecture found here:

Propensities and Multipliers Bundle

If you like this activity, check out our Unit Activity Bundle that includes activities for all of the objectives in this unit.

Fiscal Policy Unit Activity Bundle

Best of all, this activity aligns to our "Unit 3.3 - Propensities and Multipliers" video lecture, which can be found here:

Unit 3.3 - Propensities and Multipliers

For more of our video lectures, check out our "You/Will/Love Economics" YouTube channel and subscribe for upcoming videos:

You Will Love Economics on YouTube

If you like the content of our store please head over to our Facebook page to like and follow us for updates on upcoming products and chances at free give aways!

You Will Love History Facebook Page

You can also visit our shop right here on TPT and purchase Activities, Objective Bundles, Unit Bundles, Semester Bundles, and our Course Bundle, all of which align to our video lecture collection on YouTube!

Flip your classroom and the way your students learn economics TODAY!
Total Pages
8 pages
Answer Key
Teaching Duration
1 hour
Report this Resource to TpT
Reported resources will be reviewed by our team. Report this resource to let us know if this resource violates TpT’s content guidelines.


Questions & Answers

Teachers Pay Teachers is an online marketplace where teachers buy and sell original educational materials.

More About Us

Keep in Touch!

Sign Up