The government invests $1.2 trillion in infrastructure, restoring GDP from $10 trillion to its potential level of $12.5 trillion. What is the value of the government purchases multiplier? 1.2 2.08 2 2.5 0.48

If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential GDP $15 trillion, then government purchases would need to increase by ________ to restore the economy to potential GDP.

Assume the corresponding multiplier values: government purchases multiplier (2) and tax multiplier (-1.6). Suppose the current equilibrium GDP is $13.5 trillion and the potential GDP is $14.3 trillion. To return to potential GDP, what is the necessary change in government purchases? Government purchases decrease by $800 billion. Government purchases increase by $800 billion. Government purchases decrease by $125 billion. Government purchases increase by $400 billion. Government purchases increase by $500 billion.

Assume the economy is closed and there is no government. The aggregate demand componentsare described below:C = 100 + 0.6YI = 200What is value of the multiplier?

Select Any One Of the Following Options: With the Consumption function: C=200+ 0.75(Y-T) and each of G, I and T being 100 what is the value of the Government purchase Multiplier?2314

Assuming the currency ratio is 0.2, and the reserve ratio is 0.9. What is the value of money multiplier? Provide your answer up to two decimal places