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define multiplier effect
states that an initial ejection into the economy will lead to a bigger final increase in GDP
how would a new hospital increase consumtion of goods and services
construction workers, doctors and nurses now have jobs
construction firm to build hospital has an increase in prfits
local businesses benefit from increased consuption as being near hospital
draw a positive multiplier effect
three evaluative points of the multiplier effect
the size of the multiplier is unknown so its difficult to determaine its benefits
if people save the extra income or buy imports
business and consumer confidence
what is the calculation for multiplier effect
1/1-PMC or 1/MPW
Note 
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