Question

The impact fiscal multiplier is A. usually estimated to have an average value of 2. B. usually estimated to have an average value of 0. C. the actual immediate multiplier effect of a fiscal policy action after taking into consideration direct fiscal offsets and other​ short-term crowding out of private spending. D. the multiplier effect of a fiscal policy action that applies to a​ long-run period after all influences on equilibrium real GDP have been taken into account.

Answer 1

D. the multiplier effect of a fiscal policy action that applies to a​ long-run period after all influences on equilibrium real GDP have been taken into account.

Step-by-step explanation:

The fiscal multiplier measures the effect that increases in fiscal spending will have on a nation's economic output, or gross domestic product (GDP).