Through the multiplier effect, an increase in investment spending (or consumption spending, government purchases, or net export
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Through the multiplier effect, an increase in investment spending (or consumption spending, government purchases, or net export spending) ripples through the economy, ultimately creating a magnified increase in real GDP. The multiplier is the ultimate change in GDP divided by the initiating change in investment or some other component of spending.
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Related Book For
Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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