Multiplier Effect
What Multiplier Effect means in Geography GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Multiplier Effect
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Reference: AQA
One economic activity leads to further economic growth, as factories provide direct formal employment and wages that stimulate secondary businesses and indirect employment.
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
- Section A: Urban issues and challenges (AQA GCSE)
- 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)
- Quality of life
- Biodiversity
- Conservation
- Core-Periphery Model
- Counter-urbanisation
- Deindustrialisation and economic shift
- Desertification
Using Multiplier Effect in the exam
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