In Part 1 of this series on economic stimulus fiscal policy, I defined what fiscal policy is and why policy makers would use it during an economic downturn. Today, I discuss "the multiplier process." The multiplier process is the reason that not all fiscal policies are the same - some are more effective than others at jump-starting a faltering economy. In short, the multiplier effect is the phenomenon by which a dollar injected into the economy (in this case, through fiscal policy) replaces more (and sometimes less) than a dollar of reduced aggregate demand.