A change in aggregate demand equals the multiplier times the initial change in expenditures.

Sure, I can explain this concept for you.

The statement is referring to the concept of the multiplier effect in economics. The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Here are the steps to understand it:

1. Initial Change in Expenditures: This is the initial increase or decrease in spending. For example, if the government decides to increase spending on infrastructure by $1 billion, this would be the initial change in expenditures.

2. The Multiplier: The multiplier is the number that economists use to estimate how much an initial change in spending will affect the total economy. It is calculated based on the marginal propensity to consume or the marginal propensity to save. If people tend to spend a large portion of additional income (high marginal propensity to consume), the multiplier will be larger.

3. Change in Aggregate Demand: Aggregate demand is the total demand for all goods and services in an economy. The change in aggregate demand is the initial change in expenditures multiplied by the multiplier. So, if the multiplier is 2, and the initial change in expenditures is $1 billion, the change in aggregate demand would be$2 billion.

So, the statement "A change in aggregate demand equals the multiplier times the initial change in expenditures" is saying that the total impact on the economy (the change in aggregate demand) is the initial change in spending multiplied by the multiplier.