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Intro to the multiplier and how it measures changes in equilibrium expenditure
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Intro to the multiplier and how it measures changes in equilibrium expenditure
8:08
About this lesson
The Multiplier Definitions
- Change in equilibrium and autonomous expenditure
- Multiplier is always greater than 1
- Why Multiplier> 1?
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Video 1 of 3
Intro to the multiplier and how it measures changes in equilibrium expenditure
8 min
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Deriving the multiplier formula from the slope of the AE curve
13 min
How imports and income taxes make the multiplier smaller
14 min