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Multiplier

Hi, in big essay questions with lots of marks when I'm explaining how the multiplier changes national income, would I HAVE to explain it with an example e.g. if consumer expenditure increases the multiplier will operate by so and so....


What I mean is, how can I explain the multiplier in general terms without having to refer to specifically consumption/investment/government/X-M?
Thank you.
We only have to mention the multiplier effect rather than explain for WJEC.
Generally I would describe it as the increase in final income arising from any new injection of spending
Original post by BrownieLover
Hi, in big essay questions with lots of marks when I'm explaining how the multiplier changes national income, would I HAVE to explain it with an example e.g. if consumer expenditure increases the multiplier will operate by so and so....


What I mean is, how can I explain the multiplier in general terms without having to refer to specifically consumption/investment/government/X-M?
Thank you.




I would define it as followed:

When an initial injection into the circular flow leads to a greater than proportional increase in national income. .., Eg, one persons spending is another persons income.

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