Suppose an initial increase in government expenditure increases output by $50,000. if the size of the multiplier was 1.0, the si

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Paul [167]

2 years ago

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Suppose an initial increase in government expenditure increases output by $50,000. if the size of the multiplier was 1.0, the si

ze of the initial increase in government expenditure was _____

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1 answer:

Tamiku [17] · Answer 1 · 2023-06-29T22:49:51+03:00

Suppose an initial increase in government expenditure increases output by $50,000. if the size of the multiplier was 1.0, the size of the initial increase in government expenditure was $50000.

<h3>How to solve for the change in multiplier</h3>

We can solve for the change in multiplier by using this formula which is Change in output / multiplier

The change in output is 50000 while the change in multiplier is 1

This would give us 50000 / 1 = 50000

<h3>What is the government multiplier?</h3>

This is the terminology that is used in economics to refer to the fact that an additional spending by the government of an economy would cause the income of the household to rise.

Read more on government multiplier here: brainly.com/question/15883095

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