The multiplier is the

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The multiplier is a concept that describes the increase in equilibrium GDP that results from an increase in spending. Specifically, it refers to the amount by which GDP increases in response to a given increase in spending. For example, if the multiplier is 2, then a $100 increase in spending will result in a $200 increase in equilibrium GDP. The multiplier is affected by various factors, such as the marginal propensity to consume and the marginal tax rate.

The Multiplier Is the