Strength of the multiplier in microeconomics, Microeconomics

Assignment Help:

Q. Strength of the multiplier in microeconomics?

Multiplier: An initial stimulus to spending (in form of new consumer, business or government purchases) generally results in a larger final increase in total spending, production and employment in the economy. This magnifying effect is known as multiplier. The strength of the multiplier relies on many factors, including type of initial spending, the importance of imports in spending and amount of unused capacity that initially existed in the economy.


Related Discussions:- Strength of the multiplier in microeconomics

Distinguish between economic growth and economic development, Question 1: ...

Question 1: (a) Describe the different forms that foreign aid may take. (b) Does foreign aid lead to economic growth? Discuss. Question 2: (a) Distinguish between ec

Roger, What would be a factor that would make the prospects hopeful for ove...

What would be a factor that would make the prospects hopeful for overcoming the demand for resources in the future

Origin of sylos labini''''s limit pricing model, write about the origin of ...

write about the origin of sylos labini''s limit pricing model

Elasticity, E-goods are returning to price levels which we thought they had...

E-goods are returning to price levels which we thought they had left behind, again the inevitable price elasticity. Why is it so certain that price elasticity will cause those pric

Demand, demand elasticity

demand elasticity

Illustrate the roles of mathematics in modern economics, Illustrate the rol...

Illustrate the roles of mathematics in modern economics? Roles of Mathematics in Modern Economics: Mathematics has become a significant tool into modern economics. Mostly

What are the possibilities of returns to scale in production, What are the ...

What are the possibilities of returns to scale in production technology? Three possibilities are there as: technology exhibits (a) constant returns to scale; (b) decreasing ret

Point elasticity of demand, solution for calculate price elasticity of dema...

solution for calculate price elasticity of demand for demand function Q= 10 - 2p for decrease in price from Rs. 3 to Rs.2..

What are the properties of consumer demand, What are the properties of cons...

What are the properties of consumer demand? Properties of Consumer Demand: In this section check the comparative statics of consumer demand behaviour as: how the demand of cons

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd