Multiplier effect

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definition of multiplier effect
Any change in a component of AD results in a greater change in real GDP
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What is a negative multiplier effect?
a decrease in a component of AD results in a decrease in real GDP
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What is a regional multipler effect ?
an increase in regional investment and government spending to increase local jobs and incomes in regional enterpise
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advantages of GDP
comparison, impact of inflation, compare growth or recession
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disadvantages of GDP
double counting, transfer payment, black market, measuring inflation correctly
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Card 2

Front

What is a negative multiplier effect?

Back

a decrease in a component of AD results in a decrease in real GDP

Card 3

Front

What is a regional multipler effect ?

Back

Preview of the front of card 3

Card 4

Front

advantages of GDP

Back

Preview of the front of card 4

Card 5

Front

disadvantages of GDP

Back

Preview of the front of card 5

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