The multiplier definitions

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Intros
Lessons
  1. The Multiplier Definitions
    • Change in equilibrium and autonomous expenditure
    • Multiplier is always greater than 1
    • Why Multiplier> 1?
  2. Relationship Between the Multiplier & Slope of AE Curve
    • Formula for Change in Real GDP
    • Formula for Slope of AEAE curve
    • Algebraic Manipulation
    • Multiplier=11Slope  of  AE  Curve Multiplier = \frac{1} {1- Slope\;of\;AE\;Curve}
  3. The Multiplier Applications
    • Import Taxes
    • Income Taxes
    • The Multiplier becomes smaller
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Examples