Economics A Level: What does the Multiplier Effect do to AD?

Question

What does the Multiplier Effect do to AD?

go kys · Accepted Answer

-AD will be Shifting right when an Injection in the Economy [Government Spending] is Present
-When the Money is Injected, the Value of the Starting will be Multiplied. Someone's Expenditure is another's Income
-This leads to the AD shifting further and further Right

Economics A Level

What does the Multiplier Effect do to AD?

-AD will be Shifting right when an Injection in the Economy [Government Spending] is Present -When the Money is Injected, the Value of the Starting will be Multiplied. Someone's Expenditure is another's Income -This leads to the AD shifting further and further Right

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