Refer to the information provided in Table 24.6 below to answer the question(s) that follow.
Table 24.6
All Figures in Billions of Dollars
-Refer to Table 24.6. The value of the government spending multiplier

Question

Refer to the information provided in Table 24.6 below to answer the question(s) that follow.
Table 24.6
All Figures in Billions of Dollars 
-Refer to Table 24.6. The value of the government spending multiplier

Quizplus · Accepted Answer

The government spending multiplier is the ratio of the change in equilibrium GDP to the change in government spending. In Table 24.6, the change in equilibrium GDP is $100 billion and the change in government spending is $10 billion. Therefore, the government spending multiplier is 10.

Refer to the Information Provided in Table 24