Economics A-Level
The Multiplier
What The Multiplier means in Economics A-Level, as defined for Pearson Edexcel.
Definition of The Multiplier
The ratio of the final change in national income to the initial change in an injection that caused it; calculated as 1/(1-MPC) or 1/MPW.
Topics that use The Multiplier
- National income (Pearson Edexcel A-Level)
Related terms
- GNI (Gross National Income)
- PPP (Purchasing Power Parity)
- Transfer Payments
- GDP (Gross Domestic Product)
Using The Multiplier in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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