3.2

Multipliers

AP Macroeconomics

The Spending Multiplier

The Spending (Expenditure) Multiplier

Worked Example

The Chain of Spending

The Tax Multiplier

Worked Example

Why Is the Tax Multiplier Smaller?

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The Balanced Budget Multiplier

MPC and MPS in Detail

Multiplier and AD

AP Exam Tips

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Common Mistakes

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