Geography GCSE
Multiplier Effect
What Multiplier Effect means in Geography GCSE, as defined for Pearson Edexcel.
Definitions of Multiplier Effect
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
When an initial injection of investment leads to greater overall economic growth (e.g., a new factory creates jobs, workers spend money in local shops, shops expand).
A phenomenon whereby a given change in a particular input causes a larger change in an output.
Topics that use Multiplier Effect
- The level of development of the chosen developing or emerging country is influenced by its location and context in the world (Pearson Edexcel GCSE)
- Uneven global development has had a range of consequences (Pearson Edexcel GCSE)
Related terms
- Human Development Index (HDI)
- Core-Periphery Model
- Desertification
- Digital Divide
- Foreign Direct Investment (FDI)
- Informal Economy
- Emerging Country (NEE)
- Quality of Life
Using Multiplier Effect 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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