An initial change in aggregate demand can have a much greater final impact on the level of equilibrium national income. This is known as the multiplier effect

It comes about because injections of new demand for goods and services into the circular flow of income stimulate further rounds of spending – in other words “one person’s spending is another’s income." This can lead to a bigger eventual effect on output and employment

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AS Micro/Macro Economics Exam Coaching Workshop (combined)

This intensive one-day exam coaching & revision workshop will help improve your AS Economics students ability to maximise their performance in the 2015 exam

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