If a $50 billion initial increase in spending leads to a $250 billion change in real GDP,

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If a $50 billion initial increase in spending leads to a $250 billion change in real GDP, how big is the multiplier?

a. 1.0

b. 2.5

c. 4.0

d. 5.0

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 02, 2024 01:00 PM

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If a $50 billion initial increase in spending leads to a $250 billion change in real GDP,

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Macroeconomics

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