Question

When the multiplier is​ ________ , an autonomous decrease in investment of​ $200 billion decreases equilibrium real GDP by​ $400 billion. When the multiplier is​ ________ , an autonomous decrease in investment of​ $200 billion decreases equilibrium real GDP by​ $800 billion.

Answer 1

Multiplier = Change in GDP/Change in Investment

400/200=2

800/200=4

Step-by-step explanation: