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If government spending increased by $5 billion and the expenditure multiplier is 3.2, what would be the increase in the real GDP

Respuesta :

The increase in real GDP when government spending increases is $16 billion.

What is the increase in real GDP?

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Increase in Real GDP = multiplier x increase in government spending

$5 billioin x 3.2 = 16 billion

To learn more about GDP, please check: https://brainly.com/question/15225458

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