When autonomous expenditure increases, aggregate expenditure increases, and so does equilibrium expenditure and real GDP. But the increase in real GDP is larger than the change in autonomous expenditure. Therefore, we can define multiplier as:
" The multiplier is an amount by which a change in autonomous expenditure is multiplied to determine a change in equilibrium expenditure and real GDP"
" The multiplier is an amount by which a change in autonomous expenditure is multiplied to determine a change in equilibrium expenditure and real GDP"
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