If a $50 billion initial increase in spending leads to a $250 billion change in real GDP,
Question:
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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The answer is d 50 Explanation The multiplier measures th...View the full answer
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Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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