Suppose that a 4 billion increase in government spending


Suppose that a $4 billion increase in government spending increases Real GDP by $60 billion, and that a $3 billion tax reduction increases Real GDP by $68 billion. In this situation, the tax multiplier is _______________ the government spending multiplier.

Solution Preview :

Prepared by a verified Expert
Business Management: Suppose that a 4 billion increase in government spending
Reference No:- TGS02558461

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)