According to Paul Krugman, the complex multiplier for the United States is about equal to 2. The American Recovery and...
According to Paul Krugman, the complex multiplier for the United States is about equal to 2. The American Recovery and Reinvestment Act of 2009 earmarked $787B in deficit spending, of which $330.4B was spent in 2009. (Total government deficits for 2009 were $1251.7B.) The increase in nominal GDP from 2009 to 2010 was $541.2B (3.8%). If we assume that this growth resulted from the ARRA stimulus package, what was the implied multiplier associated with the stimulus package?
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