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Which of these two options will likely have the largest impact on the growth rate of RGDP? Explain your answer by focusing primarily on the
Which of these two options will likely have the largest impact on the growth rate of RGDP? Explain your answer by focusing primarily on the concepts of government spending multiplier, GM, and tax multiplier, TM. Which option do you think the economist would recommend? Based on the comparative analysis done by the economist, if you were indeed a congressman, which option would you vote for and why? Recall these formulas: Change in RGDP = GM * Change in G GM = 1/(1 - MPC) Change in RGDP = TM * Change in T TM = -MPC/(1-MPC)
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