What is the multiplier principle why is it important what, Macroeconomics

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What is the multiplier principle why is it important what

Problem

In 3-5 sentences answer these questions:

1. What is the multiplier principle? Why is it important?

2. Keynes believed strongly in countercyclical fiscal policy. What is this? How did Keynes believe governments should adjust their spending patterns in relation to the business cycle? Do you agree with Keynes? What are some of the dangers of his belief?

3. What was Keynes' explanation for the high rates of unemployment that persisted during the Great Depression? What did he argue government should do to rectify the matter?

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Macroeconomics: What is the multiplier principle why is it important what

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