A reason the government expenditure multiplier is larger than 1 is because

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The government expenditure multiplier is larger than 1 because an increase in government expenditure generates changes in consumption expenditure as well. This means that when the government spends more money, people's incomes increase, leading to an increase in their consumption expenditure, which then leads to additional increases in output, income, and expenditure. This cycle continues to multiply throughout the economy, resulting in a larger overall impact than just the initial government expenditure increase.

A Reason the Government Expenditure Multiplier Is Larger Than 1