Help me comment this student post The income expenditure model multiplier matters in the real world because the larger it is, the more money is going around. The higher the income expenditure model multiplier, it also means the more that the government is spending. When the government spends more, it is able to stimulate aggregate demand, and causes some GDP to grow. This leads to more money being spent, which means a higher GDP. People want a higher GDP because it means that the economy is doing well and, usually, but not all the time, it means that there is a higher standard of living in that country. When the income expenditure model is higher, this means a higher GDP. When people are able to buy more things, that stimulates the economy, which is good for businesses, firms, employees et cetera. The more income for the economy, means the more income for businesses, which leads to a higher income for workers and households. Which usually leads to a higher standard of living. Yes, I do believe that the government made the right decision when it came to the Great Recession. I think that the response was just right. It helped