This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Stock of capital goods on hand 7. The Multipliet Effects a. More spending results in higher GDP b. Initial change in spending changes GDP by a multiple amount i. Multiplier = Change in Real GDP/Initial Change in spending c. Causes the initial change in spending i. Changes in investment ii. Other changes 1. Shift of investment demand curve up or down d. Rationale i. Dollars spent are revived as income ii. Income received s spent (MPO)...
View Full Document
This note was uploaded on 05/09/2011 for the course ECON 102 taught by Professor Ashookshulka during the Spring '11 term at Harrisburg Area Community College.
- Spring '11