Question

how does the concept of the multiplier relate to what is happening right now during COVID-19?

how does the concept of the multiplier relate to what is happening right now during COVID-19?

Homework Answers

Answer #1

Concept of multiplier - Multiplier reveals multiple time increase in national income ( gross domestic product ) due to primarily increase in autonomous investment by government.

Due to the outbreak of covid 19 economies are facing recession and there is no income and output in economies. Even investors are pessimistic. They do not want to invest. Therefore, government tries to invest in many projects to increase the national income. Therefore, concept of multiplier is crucial in covid 19 situation.

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