a business purchases a new piece of equipment. another firm earns income from this sale and with this income builds a new factory. the contractor that built the factory earns income and uses the income to take a vacation. the resort earns income from the contractor. this scenario describes the:

Income is frequently used to refer to the total sum of cash, assets, and other value transfers received over a predetermined period of time in exchange for goods or services.Income is defined in accordance with the context in which the word is employed; there is no single, universal definition.

The multiplier effect is what?

The multiplier effect is the impact of an exogenous rise in demand on the national income and output. Imagine that the demand for investments goes up by one. Then, businesses manufacture to satisfy this demand. The rise in the national product indicates a rise in national income.

Thus, Multiplier effect is the right answer.

To learn about Multiplier effect visit here

https://brainly.com/question/13440595

#SPJ4