Refer to the information provided in Table 9.3 below to answer the questions that follow.
Table 9.3
All Numbers are in $ Million

-Refer to Table 9.3.Suppose the economy is in equilibrium and the government increases spending by $50 million,the new equilibrium output is $________ million

Question

Refer to the information provided in Table 9.3 below to answer the questions that follow.
Table 9.3
All Numbers are in $ Million
 
-Refer to Table 9.3.Suppose the economy is in equilibrium and the government increases spending by $50 million,the new equilibrium output is $________ million

Quizplus · Accepted Answer

The multiplier in this economy is 2, which means that a $50 million increase in government spending will lead to a $100 million increase in equilibrium output. Therefore, the new equilibrium output will be $1,550 million ($1,500 million + $100 million).

Refer to the Information Provided in Table 9