p Introduction The key assumption of multiplier analysis is 2p on the demand determined, this is output is purely determined by demand. There is no restriction in the supply side of the economy. The capacity to supply the output as demanded is al ways available. The firms are able and willing to supply any level of output as demanded (at given price? )Introduction • The key assumption of multiplier analysis is on “the demand determined,” this is “output is purely determined by demand.” There is no restriction in the supply side of the economy. The capacity to supply the output as demanded is always available. The firms are able and willing to supply any level of output as demanded (at given price?)