Answered: If the government spends 10 million and…

If the government spends 10 million and the multiplier is 5, then real GDP will increase by: Group of answer choices 10 million. 20 million. 100 million. 50 million.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section10.2: The Simple Keynesian Model

Problem 2ST

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Question

If the government spends 10 million and the multiplier is 5, then real GDP will increase by:

Group of answer choices

10 million.

20 million.

100 million.

50 million.

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