Block TypeFlashcardFlashcard DefinitionThe extent to which government spending supports the economy by increasing GDP.💡Related content: What is the size of the fiscal multiplier? - Economics ObservatoryWhat 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.www.economicsobservatory.com
