If a $75 billion increase in autonomous expenditure increases equilibrium expenditure by $150 billion,then the multiplier is ________.

Question

Quizplus · Accepted Answer

The multiplier is calculated as the change in equilibrium expenditure divided by the change in autonomous expenditure. In this case, the multiplier is ($150 billion change in equilibrium expenditure)/($75 billion change in autonomous expenditure) = 2.

If a $75 Billion Increase in Autonomous Expenditure Increases Equilibrium