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Author Question: If the government spending multiplier were 3.5, a $2 billion decrease in government spending would ... (Read 309 times)

robinn137

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Question 1

The time it takes for a new economic policy to affect behavior in the economy is


◦ a recognition lag.
◦ an implementation lag.
◦ a response lag.
◦ None of these

Question 2

If the government spending multiplier were 3.5, a $2 billion decrease in government spending would lower GDP by


◦ $70 billion after one year.
◦ $2 billion after two years.
◦ $1.5 billion after one year.
◦ $7 billion after one year.


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Marked as best answer by robinn137 on Apr 19, 2019

Pariscourtney

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robinn137

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Reply 2 on: Apr 19, 2019
:D TYSM


triiciiaa

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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