Indirect effects are described as: "The impact of local industries buying goods and services from other local industries. The cycle of spending works its way backward through the supply chain until all money leaks from the local economy, either through imports or by payments to value added. The impacts are calculated by applying Direct Effects to the Type I Multipliers." In the case of indirect employment effects, would this mean that I calculate the direct employment (which is technically provided), and then multiply that employment number by the Type I employment multiplier to get the indirect employment? On the other hand, before I saw that description below, I was basing my calculation off of this description of the indirect employment effect: "For Employment the Effect represents the number of jobs per $1,000,000 of business to business purchases by all resultant rounds of local Industry's purchases." This seems to be saying to multiply the indirect multiplier by the indirect output. Adding in the induced effect: "For Employment the Effect represents the number of jobs supported in local Industries, per $1,000,000 of Direct spending in the target Industry, as a result of Household purchases derived from Labor Income payments throughout all rounds of the impact." This seems to be saying to multiply the induced multiplier by the direct output. Are any of these thoughts close to the right direction?
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