Topic Videos
The Multiplier Effect
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 21 Mar 2021
This short video tutorial looks at the national income multiplier and the factors that affect the numerical value of the multiplier.
Key revision question: What is the multiplier?
If there is an initial injection (e.g. a rise in exports), then the final increase in aggregate demand and real GDP will be greater. The size of the multiplier coefficient is affected by the marginal rate of withdrawal / leakage from the circular flow of income.
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