Flashcard Definition
The extent to which government spending supports the economy by increasing GDP.
Block Type
Flashcard
Related content: 
What is the size of the fiscal multiplier? - Economics Observatory
What is likely to be the impact of a government stimulus or austerity plan in response to the coronavirus crisis on the whole economy? That is what is measured by the 'fiscal multiplier' - and the evidence indicates that increased public spending has a bigger impact during recessions.
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