Economics

(All data in real $bn.) You are STRONGLY advised to graph this. Economy is on the upward sloping portion of the AS curve. Prior to government increasing G, Y=4997. After government changed G by 86, Y become 5477. Which of the following is true?

a.

Simple multiplier is 63.69

b.

Simple multiplier is 5.58

c.

Realistic multiplier is 121.79

d.

Simple multiplier is 0.18

e.

Realistic multiplier is 5.58