What is the multiplier?
What is the multiplier?
The multiplier is the ratio of the final change in national income to the initial change in injections that caused it. An injection is spending entering the circular flow, such as investment, government spending or exports.
Step-by-step lessons covering Edexcel A A Level Economics 2.4.4 The multiplier for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.