MEANING
1. A number expressing the total change in economic activity relative to an initial change in spending.
2. A number used to multiply another number in a calculation.
Use it for
explaining how an initial spending change affects wider economic activity; comparing total output changes with the initial stimulus; qualifying a claimed knock-on economic effect using an explicit modelDistinguishes a modeled ratio linking an initial economic change to a total response from the general number used in multiplication. Academic functions: Causation / Relationships, Research / Methodology.
Words that belong together
- spending multiplier
- fiscal multiplier
- multiplier effect
On the page
The economic model uses a spending multiplier to connect the initial expenditure change with the total change in output.
The discussion explains why greater saving or imports can reduce the multiplier within the model.
The pension calculation applies the same multiplier to the eligible earnings recorded for each worker.
A multiplier below one reduces a positive amount rather than increasing it.
Word forms
- Base
- multiplier
Usage notes
Count noun: multiplier, multipliers. Used in spending multiplier, fiscal multiplier, and multiplier effect. A mathematical multiplier need not exceed one. Register: technical. Commonness: moderately common (qualitative editorial estimate, informed by dictionaries/corpus).
Practice this word in a sentenceYour margin notes
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