2.4.4 The Multiplier

1. A ... is an increase in injections or decrease in leakages which leads to a greater final increase in real GDP (8, 10)
5. ... = Change in Withdraws/ Change in Income (3)
6. ... = Change in Spending/ Change in Income. The proportion of income that will be leaked by saving (3)
7. ... = Change in Tax/ Change in Income. The proportion of income that will be leaked due to taxes (3)
10. ... = Change in Imports/ Change in Income. The proportion of income that will be leaked by buying imports (3)

2. The ... refers to the increase in final income arising from any new injections of spending (10, 6)
3. ... = 1/ Marginal propensity to Withdraw (10)
4. The ... of the multiplier depends on the MPC (marginal propensity to consume) or MPS (marginal propensity to save) of the household (4)
5. The ... is determined by Marginal Propensity to save, consume, tax or import (10, 5)
9. ... of the multiplier include: Difficult to measure the exact size of the multiplier, Multiplier isn't instant, it takes time to show increase in national income and disagreements between economists about the size of the multiplier (11)

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