The effects of a change in government expenditures is multiplied throughout an economy

Question

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When government expenditures increase or decrease, it affects the income of people who work in industries that receive the government funds. This increases or decreases their ability to spend, which then affects the income of others throughout the economy. When government expenditure generates changes in consumption expenditure, this leads to a multiplier effect in the economy.

The Effects of a Change in Government Expenditures Is Multiplied