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Explain the Mutiplier Effect. Try to explain it in some detail so that someone who did not know
anything about economics would be able to gain a fundamental understanding of it. Use a visual
aid to help the observer understand the concept.
Solution
multiplier gives the relationship between a nations change in national product to change in its
investment
i.e. Multiplier= Change in national product/ Change in investment demand
it means it is the process of calculation of total output of a nation with regards to total
investment.

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Explain the Mutiplier Effect. Try to explain it in some detail so th.pdf

  • 1. Explain the Mutiplier Effect. Try to explain it in some detail so that someone who did not know anything about economics would be able to gain a fundamental understanding of it. Use a visual aid to help the observer understand the concept. Solution multiplier gives the relationship between a nations change in national product to change in its investment i.e. Multiplier= Change in national product/ Change in investment demand it means it is the process of calculation of total output of a nation with regards to total investment.