The multiplier is the amount by which ________ is multiplied to determine ________.

Question

Quizplus · Accepted Answer

The multiplier effect in economics refers to the proportional amount by which a change in autonomous expenditure (such as government spending, investment, or exports) is magnified or multiplied to result in a larger change in the equilibrium level of expenditure (or output). This concept is fundamental in Keynesian economics, illustrating how economies can amplify the effects of fiscal or monetary policies.

The Multiplier Is the Amount by Which ________ Is Multiplied