The multiplier effect: 0 is the portion of total spending going toward the purchasing power of imports. 0 equals the changes in total spending divided by the changes in total output. CI allows for an increase in total output and income since wages and other incomes tend to fall. 0 refers to the fact that a change in non-income determined spending. leads to a larger change in total output and employment. CI is output multiplied by the economic activity we are considering