Describe the events “Squaring the Economic Circle” and explain how they illustrate the multiplier.

What will be an ideal response?

Humorist Art Buchwald illustrates the multiplier with this funny essay that shows how the effect of one economic event on one party has an effect on a second party. These effects on the second party, in turn, have an effect on a third party, and so forth, creating a ripple throughout the economy. These related and multiple effects serve to illustrate the multiplier.
Hofberger, a Chevy salesman in Tomcat, VA, called up Little ton of Little ton Menswear & Haberdashery, and told him that a new Nova had been set aside for Little ton and his wife. Little ton said he was sorry, but he couldn’t buy a car because he and Mrs. Little ton were getting a divorce. Soon afterward, Bed check the painter called Hofberger to ask when to begin painting the Hofbergers’ home. Hofberger said he couldn’t, because Little ton was getting a divorce, not buying a new car, and, therefore, Hofberger could not afford to paint his house. When Bed check went home that evening, he told his wife to return their new television set to Gladstone’s TV store. When she returned it the next day, Gladstone immediately called his travel agent and canceled his trip. He said he couldn’t go because Bed check returned the TV set because Hofberger didn’t sell a car to Little ton because Little ton's are divorcing. Sandstorm, the travel agent, tore up Gladstone’s plane tickets, and immediately called his banker, Gripsholm, to tell him that he couldn’t pay back his loan that month. When Rude maker came to the bank to borrow money for a new kitchen for his restaurant, the banker told him that he had no money to lend because Sandstorm had not repaid his loan yet. Rude maker called his contractor, Eagle-ton, who had to lay off eight men. General Motors announced it would give a rebate on its new models. Hofberger called Little ton to tell him that he could probably afford a car even with the divorce. Little ton said that he and his wife had made up and were not divorcing. His business, however, was so lousy that he couldn’t afford a car now. His regular customers, Bed check, Gladstone, Sandstorm, Gripsholm, Rude maker, and Eagle-ton had not been in for over a month.