multiplier effect graph question (1 Viewer)

gc653

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How can I refer to Keynes multiplier effect graph to employment and inflation besides economic growth??
Thanks :)
 

RivalryofTroll

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So, as we know, the multiplier effect is basically the greater than proportional increase in final income arising from an initial injection of spending (or more generally, increase in AD).

∆Y=k×∆AD

Increase in income -> reflects greater EG --> increased employment (or reduced unemployment) and increase in inflation.
 

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