The Covid virus has especially hit the casino industry in Nevada. Show you understand the autonomous spending multiplier concept by explaining why a negative shock to a core industry in any state or locality will tend to be multiplied, so the ultimate negative effect is much greater than the initial shock.
A spending multiplier is a tool which describes how much the overall spending in the economy will change with the change in any of the factor affecting aggregate demand.
COVID virus has lowered the demand in the economy. The hit of COVID virus on the casino industry in Nevada will have a larger impact on the economy because the spending of one person is the income of another person and therefore the spending got multiplied in the economy. The lower spending on casino industry by the consumer will cause lower income of those who are related with casino, Therefore, the can further spend less and this process will continue and impact all the industries in the economy and will cause overall spending to fall at a higher level.
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