? asked in Social ScienceEconomics · 2 months ago

Ap macro help pls?

If MPC is 0.5 and the government increases spending by $3 billion, what is the change in real GDP? 

1 Answer

  • Oiy
    Lv 6
    2 months ago

    1/0.5=2 is the value of multiplier. So the increase in GDP is 2x3= $6 billion.

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