-Refer to Table 11.6. In this example, the government spending multiplier is:

Name: -Refer to Table 11.6. In this example, the government spending multiplier is:
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The government spending multiplier is calculated as 1/(1-MPC), where MPC is the marginal propensity to consume. In this example, the multiplier is 2, indicating that for every dollar of government spending, total output increases by two dollars.