a. What is the difference between aggregate expenditure and consumption spending? Explain the difference between autonomous consumption and induced consumption. What is the formula for the multiplier? Explain why this formula is considered to be too simple.

b. Some economists have referred to the impact of government infrastructure spending in Australia in the following way: 'The investment multiplier will provide a further boost to the Australian economy.'

i. What do the economists mean by the 'investment multiplier'?

ii. Briefly explain what the economists means by saying that the investment multiplier would 'provide a further boost to the Australian economy'.