Economics
Textbooks
Boundless Economics
Fiscal Policy
Introduction to Fiscal Policy
Economics Textbooks Boundless Economics Fiscal Policy Introduction to Fiscal Policy
Economics Textbooks Boundless Economics Fiscal Policy
Economics Textbooks Boundless Economics
Economics Textbooks
Economics
Concept Version 5
Created by Boundless

How Fiscal Policy Can Impact GDP

Fiscal Multiplier Example

Fiscal Multiplier Example

The money spent on construction of a plant becomes wages to builders. The builders will have more disposable income, increasing their consumption and the aggregate demand.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Construction Workers."
    http://commons.wikimedia.org/wiki/File:Construction_Workers.jpg Wikimedia CC BY.

Related Terms

  • fiscal multiplier
  • Subjects
    • Accounting
    • Algebra
    • Art History
    • Biology
    • Business
    • Calculus
    • Chemistry
    • Communications
    • Economics
    • Finance
    • Management
    • Marketing
    • Microbiology
    • Physics
    • Physiology
    • Political Science
    • Psychology
    • Sociology
    • Statistics
    • U.S. History
    • World History
    • Writing

    Except where noted, content and user contributions on this site are licensed under CC BY-SA 4.0 with attribution required.