The government buys new weapons systems.The manufacturers of weapons pay their employees.The employees spend this money on goods and services.The firms they buy goods and services from pay their employees.This illustrates

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This illustrates the multiplier effect, as the initial spending by the government on weapons systems results in a ripple effect of increased spending and income throughout the economy. This is because the employees paid by the manufacturers of weapons then have more money to spend on goods and services, which in turn supports other businesses and their employees.

The Government Buys New Weapons Systems