EXPLAIN IN DETAIL HOW THE MULTIPLIER WORKS TO IMPACT GDP?

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Rahul Sunny answered 7 months ago

4. Explain the GDP multiplier and how it works. How much of the negative GDP gap...

4. Explain the GDP multiplier and how it works. How much of the negative GDP gap which existed in 2009 was closed by the almost 800B$ increase in G? What was the actual multiplier? Were the tax dollars well spent for the economic recovery? Why or why not?

Describe how the multiplier works when the government decreases spending? Explain how the multiplier depends on...

Describe how the multiplier works when the government decreases spending? Explain how the multiplier depends on the MPC and the income tax rate. Provide intuition for your answer. What happens if MPC = 0? What happens if MPC = 1? Draw the Keynesian consumption function and relate the size of the multiplier to the slope of the Keynesian consumption function.

Discuss in detail two (2) problems with GDP measurements and explain how those problems impact the...

Discuss in detail two (2) problems with GDP measurements and explain how those problems impact the economy.

1. a) What is Multiplier? Explain how it works in an economy. 4 b) Explain the...

1. a) What is Multiplier? Explain how it works in an economy. 4 b) Explain the paradox of thrift. Why do you think it is a paradox? 3 c) Suppose the consumption function is given by C=300+0.75Y while investment spending is 900 with no govt. expenditure. 3 i. Determine the equilibrium level of national income and consumption expenditure. ii. If investment spending increases to 1100, what will be the effect on equilibrium income? iii. If the government desires to increase...

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EXPLAIN IN DETAIL HOW THE MULTIPLIER WORKS TO IMPACT GDP?

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