Answered: If the expenditure multiplier is 2.5…

If the expenditure multiplier is 2.5 and the government spending increases by $4 billion, what would be the increase in the real GDP? $10 billion $6.5 billion $8 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the expenditure multiplier is 2.5 and the government spending increases by $4 billion, what
would be the increase in the real GDP?
$10 billion
$6.5 billion
$8 billion

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