The ____ effect happens where an initial ____ in spending, whether it's from ____, businesses, or the ____, leads to a larger and more ____ final impact on an economy's total output or income. The multiplier effect illustrates how ____ in spending can create a ____ effect throughout the economy, generating ____ rounds of economic activity. When an ____ increases its spending, the ____ of that spending then have more income, which they, in turn, spend on ____ and services. This creates additional ____, which prompts businesses to increase ____ and hire more workers, resulting in higher factor incomes.

Multiplier Process

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