An example of the multiplier effect is group of answer choices the government increases government spending initially by $100 billion, and total income in the economy increases by more than $100 billion. the government increases government spending initially by $100 billion, and total income in the economy increases by less than $100 billion. an increase in the price level leads to a shift in the aggregate demand curve. an increase in government spending leads to a decrease in private investment. short-run aggregate supply shifts in a response to fiscal policy.