Open in app

Sign in

Write

Sign in

Simple explanation: You earn daily income by working in a restaurant. The restaurant pays you $20. With this profit, you buy and drink coffee for $10. The coffee shop enterprise also pays its employee Abbas 10 manats daily. Abbas also buys a $5 doner and eats it. Doner driver Parviz also buys tomatoes and cucumbers for doner for $3. Thus, $20 paid by the restaurant results in a total consumption of $33.
CM Keynes theorized this process and revealed the multiplier effect.

Keynesian Multiplier: How Your $20 Spending Can Create $33 of Value in the Economy ?!
571
14

World Economy

--

--

Sir. Paul Okwudili Agbo
Sir. Paul Okwudili Agbo

Written by Sir. Paul Okwudili Agbo

3K Followers
5.4K Following

Sir.Paul Okwudili Agbo, MD of Starconnectdots Ltd, specializes in internet marketing, entrepreneurship, storytelling, and travel affiliate marketing.

No responses yet

Help

Status

About

Careers

Press

Blog

Privacy

Terms

Text to speech

Teams