Between 2008 and 2009 the government reports that investment decreased by $ 530 billion.The government also estimates that the multiplier is 2.0.If the entire decrease in investment is autonomous,then real GDP

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The multiplier effect states that a change in autonomous spending will lead to a multiple change in real GDP. In this case, the decrease in investment is autonomous, so it will lead to a decrease in real GDP. The multiplier is 2.0, so the decrease in real GDP will be $530 billion * 2.0 = $1,060 billion.

Between 2008 and 2009 the Government Reports That Investment Decreased