If Guy Barnes receives $1,000 from his newly created government job and gives $900 to Jingles Althaus for writing him a speech, and then Jingles gives $810 to Alayna Noel for installing a computer system, assuming everyone else pattern: the nation has the same spending (a) How much is the multiplier? Multiplier is (b) If $10 billion of new investment had been made, by how much would our GDP rise? GDP increases $ billion.
If Guy Barnes receives $1,000 from his newly created government job and gives $900 to Jingles Althaus for writing him a speech, and then Jingles gives $810 to Alayna Noel for installing a computer system, assuming everyone else pattern: the nation has the same spending (a) How much is the multiplier? Multiplier is (b) If $10 billion of new investment had been made, by how much would our GDP rise? GDP increases $ billion.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.12P
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Transcribed Image Text:If Guy Barnes receives $1,000 from his newly created government job and gives $900 to Jingles Althaus for writing him a speech, and
then Jingles gives $810 to Alayna Noel for installing a computer system, assuming everyone else in the nation has the same spending
pattern:
(a) How much is the multiplier?
Multiplier is
(b) If $10 billion of new investment had been made, by how much would our GDP rise?
GDP increases $
billion.
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