Economics A-Level
Multiplier process
What Multiplier process means in Economics A-Level, as defined for AQA.
Definition of Multiplier process
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Reference: AQA
An initial change in expenditure into the circular flow leads to a disproportionately larger final impact on local or national income.
Topics that use Multiplier process
- Aggregate demand and the level of economic activity (AQA A-Level)
Related terms
- Aggregate demand
- Circular flow
- Circular flow of income
- Inflation
- Leakages and injections
- Marginal propensity to consume (MPC)
- Multiplier effect
- Marginal propensity to consume
Using Multiplier process in the exam
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