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.

Question

Axel Sims

Business

27 May, 06:01

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.

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Roger Moss · 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.

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).