Fiscal Multiplier
Definition
The change in GDP per dollar of fiscal stimulus. Larger in slumps with idle resources, smaller near full employment.
Example
Estimates of US spending multipliers during the 2008 crisis range from 0.5 to over 2.
The change in GDP per dollar of fiscal stimulus. Larger in slumps with idle resources, smaller near full employment.
Estimates of US spending multipliers during the 2008 crisis range from 0.5 to over 2.