If the government spending multiplier is 6 and government spending increases by $30 billion, output will ________ by $________ billion.

Question

Quizplus · Accepted Answer

The government spending multiplier of 6 means that for every dollar increase in government spending, output will increase by $6. Therefore, an increase in government spending of $30 billion will lead to an increase in output of $180 billion.

If the Government Spending Multiplier Is 6 and Government Spending