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.
You might also like
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Export Complexity - Hidalgo and Hausmann
9th July 2014
Understanding the Accelerator Effect
Study Notes
The Star Wars Multiplier Effect
14th September 2015
Google's £1bn Investment in the UK Economy
15th November 2016
Test 10: A Level Economics: MCQ Revision on Fiscal Policy
Practice Exam Questions
Evaluating the effects of rising national debt
Topic Videos
2.5.1 Export-Led Growth (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints