Multiplier
When households consume more (c↑) or firms raise their investment (I↑), GDP will increase (Y↑)
But a higher GDP means higher output is being produced, which translates to more income for workers, who will then consume more goods and services (c↑).
A circular phenomenon(c↑) or (I↑)=> (Y↑)=>(c↑)=>(Y↑)=>…….