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These three videos explain the process of affecting aggregate demand using government expenditure multiplier. If government expenditure is increased then how the total demand/output in the economy is affected? This is much similar to our previous blog post, the only difference being, it tackles the issue of government expenditure specifically.
This series of videos discusses following issues related to government expenditure
- How an increase in government expenditure affects output?
- How to calculate government expenditure multiplier? How can it be depicted graphically?
- If an economy is placed at less than full employment level, then how government expenditure multiplier can be used to put an economy back to the full employment level?
