Economic Multiplier

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

• Context:
  • …
• Example(s)
  • Fiscal Multiplier.
  • Money Multiplier.
  • Keynesian Multiplier.
  • …
• Counter-Example(s)
  • Investment Multiplier.
• See: Economic Output Growth Value, Growth Rate, Economic Acceleration Principle, Multiplier–Accelerator Model.

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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

• (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Multiplier_(economics)
  • In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable.

    For example, suppose variable x by 1 unit, which causes another variable y to change by M units. Then the multiplier is M.

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