c)effect of multiplier in economy

• multiplier means that?

  growth occurs quicker- injections lead to a bigger increase in national income.

  Injections can be targeted at those with the biggest MPC in order to increase the size of the multiplier.
• there will also be a time lag between the increase in income and the full effect of that increase as not everyone will spend the money straight away.
• overall effect on the economy?

  depend on the change in AD and the elasticity of the AS curve.