What does economic multiplier analysis estimate?

Question

Quizplus · Accepted Answer

Economic multiplier analysis estimates both direct and indirect benefits that result from a change in economic activity, such as an increase in government spending or investment in a new industry. The direct benefits are the initial spending or investment, while the indirect benefits refer to the secondary economic activity resulting from that initial spending or investment. Therefore, the correct answer is option C.

What Does Economic Multiplier Analysis Estimate