Economics A-Level
The multiplier effect
What The multiplier effect means in Economics A-Level, as defined for AQA.
Definition of The multiplier effect
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Reference: AQA
The process by which an initial injection circulates through the economy, generating a multiplied increase in national income as workers spend their new wages.
Topics that use The multiplier effect
- The circular flow of income (AQA A-Level)
Related terms
- Circular flow of income
- Economic growth
- Economic welfare
- Full employment income
- Inflation
- Injections
- Living standards
- Macroeconomic equilibrium
Using The multiplier effect in the exam
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