The concept that increases in spending cause larger increases in equilibrium GDP is known as the

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The concept that increases in spending cause larger increases in equilibrium GDP is known as the multiplier. The multiplier represents the proportional increase in GDP that results from an initial increase in spending. It is based on the idea that increased spending leads to increased income, which in turn leads to increased spending, and so on. The multiplier effect is an important concept in macroeconomics, as it helps to explain how changes in spending can have a significant impact on the overall economy.

The Concept That Increases in Spending Cause Larger Increases in Equilibrium