**Question**If a $440 billion initial increase in spending leads to a $8050 billion change in real GDP, how big is the multiplier?---**Explanation**This question involves calculating the economic multiplier effect. The multiplier is calculated by dividing the change in GDP by the initial change in spending.**Calculation**: Multiplier = Change in GDP / Initial Change in SpendingUsing the given values:Multiplier = $8050 billion / $440 billionThe multiplier quantifies the total change in GDP attributable to an initial change in spending, reflecting how economic activity can be amplified through successive rounds of consumption.

So here we calculate the Multiplier value by using the Real GDP and Income so the calculation of the…

Answered: 2. If a $440 billion initial increase…

2. If a $440 billion initial increase in spending leads to a S8050 billion change in real GDP, how big is the multiplier?

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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