The Multiplier Effect
Economics · JC 2 · Introduction to Macroeconomics and National Income · 1.º Período

The Multiplier Effect

Students explore the multiplier process and how autonomous changes in aggregate demand lead to a larger change in national income. They will calculate the multiplier and understand its determinants.

MOE Syllabus OutcomesSEAB GCE A-Level H2 Economics (9757), Theme 3: The National and International Economy, 3.1.2 The multiplier effectSEAB GCE A-Level H2 Economics (9757), Theme 3: The National and International Economy, 3.1.2 Equilibrium national income and general price level

About This Topic

Students explore the multiplier process and how autonomous changes in aggregate demand lead to a larger change in national income. They will calculate the multiplier and understand its determinants.

Key Questions

  1. What is the multiplier effect?
  2. How do marginal propensities affect the size of the multiplier?
  3. How does the multiplier operate in a small and open economy like Singapore?

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Edited by Adriana Perusin, Editor-in-Chief, Flip Education
Synthesized by Flip Education from Lyman's Think-Pair-Share collaborative-discussion routine (1981)