Question

In this example of a Keynesian driven recovery, Government Spending increases to a level of $__________ billion in order to start an upward multiplier process..

Answer 1

$100 billion

Step-by-step explanation:

The Keynesian Multiplier is a theory that states that if spending on private consumption increases and the net expenditure by the government leads to an increase in the total GDP by more than the value of the increase. From the Keynesian example, the answer is 100 billion dollars.