Economic Multiplier

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An Economic Multiplier is an economic measure used to examine endogenous variable changes in response to a change of a specific exogenous variable.



References

2016

  • (Investopedia,2016) ⇒ http://www.investopedia.com/terms/m/multiplier.asp
    • In economics, a multiplier is the factor by which gains in total output are greater than the change in spending that caused it. It is usually used in reference to the relationship between investment and total national income. The multiplier theory and its equations were created by British economist John Maynard Keynes. (...) By “investment,” Keynes meant government spending. He believed that any injection of government spending created a proportional increase in overall income for the population, since the extra spending would carry through the economy.

2016