Multipliers vary across the country, but typically they are ______ for gross sale items, ______ for payroll sums, and _____ for employment.

• A. 2.0; 1.75; 2.0
• B. 1.5; 1.75; 2.0
• C. 2.5; 1.25; 2.5
• D. 2.0; 2.0; 1.75

Answer: (A)

Multipliers show how much total economic activity is generated from a unit of direct activity, and different channels (gross sales, payroll, employment) produce different ripple effects in the local economy. For regional impact analyses, the typical pattern is that gross sales generate a larger total impact than payroll alone, because every dollar of sales flows through multiple parts of the economy (suppliers, taxes, employee spending, etc.). Payroll sums are slightly smaller because some of the wages are spent outside the local sphere or saved, reducing the immediate local ripple. Employment multipliers are usually about the same as gross sales, since new jobs bring income that circulates locally and supports additional spending and hiring.

So the familiar, commonly used values are: 2.0 for gross sales, 1.75 for payroll sums, and 2.0 for employment. The other option sets would imply unusual or inconsistent ripple effects that don’t reflect typical regional economic linkages.