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Questions › JNU › JNU SSS 2021 › Q24
1 markMacroeconomics › Keynesian cross and the multiplier › Government spending and tax multipliersModerateabout 2 min

JNU SSS 2021 Question 24: Keynesian cross and the multiplier

When MPCd_\text{d}d​ =2/5, change in the government expenditure (Δ\DeltaΔG) =1, change in the tax (Δ\DeltaΔT) =1/10, find fiscal policy multiplier.

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When MPC _d =2/5, change in the government expenditure (Δ G) =1, change in the tax (Δ T) =1/10, find fiscal policy multiplier. (A) 3/5 (B) 3/7 (C) 1/8 (D) 17

Also written as: When MPC _d =2/5, change in the government expenditure (Delta G) =1, change in the tax (Delta T) =1/10, find fiscal policy multiplier.

Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.

What this question tests

This question is on Government spending and tax multipliers, part of Keynesian cross and the multiplier in Macroeconomics.

The effect on income of changes in government spending, lump-sum taxes, transfers and income taxes.

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