According to the multiplier effect, changes in aggregate supply are magnified into larger changes in output and income.

Name: According to the multiplier effect, changes in aggregate supply are magnified into larger changes in output and income.
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The multiplier effect primarily refers to how changes in autonomous spending (like investment, government spending, or exports) lead to magnified changes in aggregate demand, output, and income, rather than changes in aggregate supply.

According to the Multiplier Effect, Changes in Aggregate Supply Are