Write a short note on multiplier and kinds of multiplier this is question of economics not maths
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Answer:
In economics, a multiplier broadly refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic variables. In terms of gross domestic product, the multiplier effect causes gains in total output to be greater than the change in spending that caused it.
Top 3 Types of Multiplier in Economics
(a) Employment Multiplier:
(b) Price Multiplier:
(c) Consumption Multiplier:
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Answer:
What Is a Multiplier?
In economics, a multiplier broadly refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic variables. In terms of gross domestic product, the multiplier effect causes gains in total output to be greater than the change in spending that caused it.
The Fiscal Multiplier
The fiscal multiplier is the ratio of a country's additional national income to the initial boost in spending or reduction in taxes that led to that extra income.
The Investment Multiplier
An investment multiplier similarly refers to the concept that any increase in public or private investment has a more than proportionate positive impact on aggregate income and the general economy. The multiplier attempts to quantify the additional effects of a policy beyond those immediately measurable
The Earnings Multiplier
The earnings multiplier frames a company's current stock price in terms of the company's earnings per share (EPS) of stock. It presents the stock's market value as a function of the company's earnings and is computed as price per share/earnings per share (commonly called the earnings multiple).
The Equity Multiplier
The equity multiplier is a commonly used financial ratio calculated by dividing a company's total asset value by total net equity. It is a measure of financial leverage. Companies finance their operations with equity or debt, so a higher equity multiplier indicates that a larger portion of asset financing is attributed to debt
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