The fiscal multiplier of government purchases is not always the same - it can change based on the size of the spending shock. In incomplete markets models, the multiplier increases with larger spending shocks, meaning big positive shocks have the biggest impact, while big negative shocks have the smallest impact. This happens because of how fiscal shocks are financed and how labor supply responds across different income levels. The model predicts that the overall labor supply elasticity goes up with bigger fiscal shocks, regardless of how the shocks are financed. Data from 15 OECD countries and the US supports these findings.