The multiplier ensures that equilibrium GDP equals full-employment GDP.

Name: The multiplier ensures that equilibrium GDP equals full-employment GDP.
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The multiplier concept explains how initial changes in spending lead to larger changes in income and output, but it does not ensure that equilibrium GDP equals full-employment GDP. Equilibrium GDP can be above or below full-employment GDP depending on various factors, including the level of aggregate demand.

The Multiplier Ensures That Equilibrium GDP Equals Full-Employment GDP