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Author Question: Multiplier Effect of Government PurchasesAssume the government purchases multiplier is 2, real GDP ... (Read 281 times)

tspaw0811

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Multiplier Effect of Government Purchases

Assume the government purchases multiplier is 2, real GDP is $423 billion, and potential real GDP is $437 billion. By how much would government purchases need to increase to restore the economy to potential real GDP? (Round to the nearest hundredth when necessary.)
◦ $14 billion
◦ $28 billion
◦ $3.5 billion
◦ $7 billion


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Marked as best answer by tspaw0811 on Nov 23, 2022

senorfranco

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tspaw0811

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Reply 2 on: Nov 23, 2022
Gracias!


meow1234

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

 

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