In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.This indicates that a ________ increase in government purchases would increase equilibrium real GDP by $157 billion

A) $1 billion
B) $10 billion
C) $100 billion
D) $157 billion