This would translate to more income for workers, more supply, and ultimately greater aggregate demand. How Is the Multiplier Effect Related to MPC? The magnitude of the multiplier is directly ...

The multiplier effect in Keynesian economics asserts that spending at the government level can have a large impact on aggregate demand and economic growth. An increase in government spending would ...

Changes in aggregate demand, whether anticipated or unanticipated ... Keynesian models of economic activity also include a multiplier effect; that is, output changes by some multiple of the increase ...

He believed that government spending could add to aggregate demand and that this fiscal stimulus would create a multiplier effect. This effect would result from increases in income and consumer ...