Multiplier (HL only)

IB Economics: Multiplier (HL only)

This lesson focuses on the multiplier - one of the most important components of understanding keynesian economic theory.What is the multiplier in economics and how is it calculated?Lesson time: 1 hourLesson objectives: Explain, with reference to the concepts of leakages (withdrawals) and injections, the nature and importance of the Keynesian multiplier.Calculate the multiplier using either of the following formulae:...

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