Multiplier Effect: The multiplier effect refers to the amplified impact of fiscal or monetary policy actions on aggregate demand and overall economic output. When government spending increases, for example, it leads to increased income for individuals who then spend more, creating a chain reaction and multiplying the initial impact.
Infrastructure Spending: Infrastructure spending refers to government investment in building or improving public infrastructure such as roads, bridges, schools, and hospitals. Such spending is often used as a stimulus measure since it creates jobs and stimulates economic activity.
Quantitative Easing (QE): Quantitative easing is a monetary policy tool where central banks buy long-term securities from commercial banks to increase money supply and lower interest rates. This encourages lending and investment by making borrowing cheaper, thereby stimulating economic activity.