State some of the simplifying assumptions used to develop the multiplier. Explain what happens if the assumptions
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State some of the simplifying assumptions used to develop the multiplier. Explain what happens if the assumptions do not hold?
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The multiplier is a key concept in Keynesian economics that describes the impact of an initial change in spending on aggregate demand and output The multiplier effect arises from the circular flow of ...View the full answer
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Related Book For 
Economics An Introduction To Traditional And Progressive Views
ISBN: 9780765616685
7th Edition
Authors: Howard J. Sherman, E. K. Hunt, Reynold F. Nesiba, Phillip A. O'Hara, Barbara A. Wiens-Tuers
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