A-level Paper 2, November 2021The National and Global Economy
A-level Paper 2, November 2021, Q1(b)
Calculate the total final increase in US aggregate demand as a result of the President’s ‘expansionary fiscal policies’, assuming no other changes.
Short answerCalculate2 marks
Context
After the Global Financial Crisis of 2008, the US President introduced expansionary fiscal policies of $800 billion. The International Monetary Fund estimated that the multiplier at the time was approximately 1.5.
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