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Keynesian multiplier

HL only

The Keynesian multiplier shows that any increase in the value of injections into the circular flow of an economy results in a proportionately larger increase in aggregate demand.

Where this appears

The syllabus topics that use this term.

  • 3.6Automatic Stabilizers (HL only)
  • 3.6Keynesian Multiplier (HL only)

Taught in Demand Management (Fiscal Policy)

All 809 terms
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