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    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.
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    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
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    (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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