The deepest the output gap was during the Great Recession was -7.46 percent in July 2009. Many believe that the multiplier used was 1.5. If this is true, what is
? What is
if the multiplier used was 1.25? What would the percent change in government expenditure be to close this gap, assuming monetary policy is not being used?

Question

The deepest the output gap was during the Great Recession was -7.46 percent in July 2009. Many believe that the multiplier used was 1.5. If this is true, what is  
? What is  
if the multiplier used was 1.25? What would the percent change in government expenditure be to close this gap, assuming monetary policy is not being used?

Quizplus · Accepted Answer

The Answer of The deepest the output gap was during the Great Recession was -7.46 percent in July 2009. Many believe that the multiplier used was 1.5. If this is true, what is  
? What is  
if the multiplier used was 1.25? What would the percent change in government expenditure be to close this gap, assuming monetary policy is not being used?

The Deepest the Output Gap Was During the Great Recession