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By Staff Reporters
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Generally, they are defined as the ratio of a change in output (ΔY) to a discretionary change in government spending or tax revenue (ΔG or ΔT) (Spilimbergo and others, 2009). Thus, the fiscal multiplier measures the effect of a $1 change in spending or a $1 change in tax revenue on the level of GDP.
CITE: https://www.r2library.com/Resource/Title/082610254
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LINK: https://www.tutor2u.net/economics/reference/multiplier-effect
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Filed under: "Ask-an-Advisor", Financial Planning, Glossary Terms, Health Economics, Videos | Tagged: fiscal, fiscal multiplier effect, multiplier effect |
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