The spending multiplier effect is the result of a movement along the aggregate expenditures (AE)line.

Name: The spending multiplier effect is the result of a movement along the aggregate expenditures (AE)line.
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The spending multiplier effect is the result of a shift in the aggregate expenditures line, not a movement along it. It occurs when an initial change in spending leads to a larger overall change in economic output.

The Spending Multiplier Effect Is the Result of a Movement