Define the Multiplier

question 21

Essay

Define the multiplier.How is it related to real GDP and the initial change in spending? How can the multiplier have a negative effect?

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Definitions:

Retailers

Retailers are businesses or individuals that purchase goods from manufacturers or wholesalers and sell them directly to consumers.

Promotional Activities

Marketing efforts intended to increase awareness or sales of a product or service, often through discounts or advertising.

Profitable

A state where a business or investment generates more revenue than the expenses incurred, leading to a financial gain.

Retailers

Businesses that sell goods directly to consumers, acting as the final link in the supply chain.