multiplier effect
The multiplier effect is a phenomenon where an initial change in an economic factor leads to a greater overall impact on the economy, as the change sets off a series of subsequent changes or spending that amplify the initial impact.
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Related Concepts (18)
- aggregate demand
- consumer spending
- deficit financing
- demand-side economics
- economic growth
- employment
- entrepreneurship
- fiscal policy
- government spending
- infrastructure development
- investment
- local business development
- national income
- snowball effect
- supply chains
- tourism industry
- trade and exports
- wealth creation