We found that for every $1 increase in G there is a multiplied impact on output with, in the most pasic model, a multiplier of 1 A study by economists at the New York Fed conducted 1- MPC during the COVID-19 recession found that "as of the end of June 2020, a relatively small share of stimulus payments-just] 29 percent-was used for consumption." What is the G multiplier based on that estimated MPC and the formula from the basic model?
We found that for every $1 increase in G there is a multiplied impact on output with, in the most pasic model, a multiplier of 1 A study by economists at the New York Fed conducted 1- MPC during the COVID-19 recession found that "as of the end of June 2020, a relatively small share of stimulus payments-just] 29 percent-was used for consumption." What is the G multiplier based on that estimated MPC and the formula from the basic model?
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.10P
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