As the government builds new schools,the construction workers and material vendors employed on the project spend more in the community where they live.What is the economic term for this effect?

Question

Quizplus · Accepted Answer

The economic term for this effect is the multiplier effect. This refers to the idea that the initial injection of money into an economy can result in a larger increase in economic activity as the money is spent and re-spent within the community. This can create a ripple effect, leading to job creation and increased spending in the local area.

As the Government Builds New Schools,the Construction Workers and Material