In the Keynesian model, the relationship between the multiplier and the change in government spending is as
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Question:
In the Keynesian model, the relationship between the multiplier and the change in government spending is as follows:
change in government spending = multiplier change in total spending in the economy
multiplier change in government spending change in total spending in the economy
change in government spending + change in total spending in the economy multiplier
change in government spending/multiplier - change in total spending in the economy
Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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