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2 years ago

If government spending increased by $5 billion and the expenditure multiplier is 3.2, what would be the increase in the real GDP

Business

1 answer:

aleksley [76]2 years ago

3 0

The increase in real GDP when government spending increases is $16 billion.

<h3>What is the increase in real GDP?</h3>

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Increase in Real GDP = multiplier x increase in government spending

$5 billioin x 3.2 = 16 billion

To learn more about GDP, please check: brainly.com/question/15225458

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