Economics GCSE

The Multiplier Effect

What The Multiplier Effect means in Economics GCSE, as defined for Pearson Edexcel.

Definition of The Multiplier Effect

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Read the wording for your board, then hide it and explain The Multiplier Effect in your own words. Rough notes are fine. This is a self-check, with no mark or grade.

Reference: Pearson Edexcel

The process by which an initial injection of spending into the economy leads to a proportionally larger final increase in national income (GDP).

Pearson Edexcel · Government policies (study guide)

Topics that use The Multiplier Effect

Government policies (Pearson Edexcel GCSE)

Related terms

Using The Multiplier Effect in the exam

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