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Unformatted text preview: Lao Tat Sang Lao ECON 202 David Bell May 4, 2010 CTP 05 Multiplier Effect This is a nice article to explain multiplier effect with a lively cause. Even though this article was printed for a long time, the situation has no quite difference to today. According to the text book, the multiplier effect is the relationship between changes in spending and change in real GDP. We can get a greater multiplier effect in a smaller MPS level. That also means multiplier effect will be greater if people consume more. Therefore, I think multiplier effect is one of the powers to develop and decline the economy. This article is effective to help me to understand the multiplier effect because it shows me what people may think if their incomes are going down. In that cause of the article, Littleton cant afford a new Ford because he thought his wife would leave him,...
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This note was uploaded on 04/17/2011 for the course ECON 202 taught by Professor Kotlove during the Spring '11 term at Edmonds Community College.
- Spring '11