ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a positive multiplier?
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Initial injection causes greater final increase in real GDP
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decrease in an injection to increase wealth
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increase in leakage leading to an increase in real GDP
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an injection causes a decrease in real GDP
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Explanation:
Detailed explanation-1: -The multiplier effect occurs when an initial injection into the circular flow causes a bigger final increase in real national income. This injection of demand might come for example from a rise in exports, investment or government spending.
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