Are the values of the multipliers in the short run and the long ...

[WhattoUnderstand]

Are the values of the multipliers in the short run and the long run larger or smaller than 2?
 
  What will be an ideal response?

Question 2

Refer to Table 9-11. With trade, what is the total gain in hat production?
 
  A) 150 B) 300 C) 400 D) 650

[emilymalinowski12]

Answer to Question 1

The multiplier in the short run is less than the multiplier of 2 because the short-run increase in real GDP is less than 200 billion. The long-run multiplier is even smaller. It equals zero.

Answer to Question 2

A

[WhattoUnderstand]

Thanks for the timely response, appreciate it

[Kedrick2014]

YES! Correct, THANKS for helping me on my review