If the spending multiplier is 2, an increase of autonomous spending by 10 will increase equilibrium spending and income by Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b Question 2 Spending Review с d 2 10 5 20 Correct Answer: ✓d - 20
If the spending multiplier is 2, an increase of autonomous spending by 10 will increase equilibrium spending and income by Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b Question 2 Spending Review с d 2 10 5 20 Correct Answer: ✓d - 20
Chapter10: Kenesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy
Section: Chapter Questions
Problem 11QP
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Can someone please explain this to me?
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Step 1
The spending multiplier is defined as the ratio of the change in GDP to the change in autonomous expenditure.
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