The following set of questions concerns the US$1400 stimulus checks sent last spring to American taxpayers...

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The following set of questions concerns the US$1400 stimulus checks sent last spring to American taxpayers earning under US$75,000 in 2020 as part of the America Rescue Plan Act (ARPA). The Congressional Budget Office (CBO) estimates that, combined with extended unemployment benefits, the ARPA will increase transfers in 2021 by roughly US$0.9 trillion. The CBO also estimates that 2021 full-year, nominal GDP will be about US$23 trillion ($22.7 to be more precise) after hitting almost US$21.5 trillion in 2020 (see figure below). US Nominal GDP (US$ billions) 2019Q4 21747 2020Q4 2021Q4 202204 21495 22699 23720 CBO growth rate, Q4 on Q4 % -1.2 5.6 4.5 Treasury Spending on ARPA 898 292 Q1.1 Fiscal multiplier (2 Points) The CBO estimates that the US federal budget deficit will increase by U$1.2 trillion due to ARPA. If all of the expected 2021 GDP growth could be attributed to ARPA, and using the figures on US GDP shown in Figure 1, what is the implied fiscal multiplier of the increased deficit? Please write your answer with a leading zero if it is less than one, and one decimal point, e.g., 0.x or 3.y, where x and y are numerals. The following set of questions concerns the US$1400 stimulus checks sent last spring to American taxpayers earning under US$75,000 in 2020 as part of the America Rescue Plan Act (ARPA). The Congressional Budget Office (CBO) estimates that, combined with extended unemployment benefits, the ARPA will increase transfers in 2021 by roughly US$0.9 trillion. The CBO also estimates that 2021 full-year, nominal GDP will be about US$23 trillion ($22.7 to be more precise) after hitting almost US$21.5 trillion in 2020 (see figure below). US Nominal GDP (US$ billions) 2019Q4 21747 2020Q4 2021Q4 202204 21495 22699 23720 CBO growth rate, Q4 on Q4 % -1.2 5.6 4.5 Treasury Spending on ARPA 898 292 Q1.1 Fiscal multiplier (2 Points) The CBO estimates that the US federal budget deficit will increase by U$1.2 trillion due to ARPA. If all of the expected 2021 GDP growth could be attributed to ARPA, and using the figures on US GDP shown in Figure 1, what is the implied fiscal multiplier of the increased deficit? Please write your answer with a leading zero if it is less than one, and one decimal point, e.g., 0.x or 3.y, where x and y are numerals.