Do you think that the short run government spending multiplier here could be negative (<0) such that GDP in the short run would decrease as a result of the stimulus package. Or do you think it is more likely to be between 0 and 1 as Becker and Murphy suggest (GDP increases on net but at the expense of private sector activity).
Hi Casey,
ReplyDeleteDo you think that the short run government spending multiplier here could be negative (<0) such that GDP in the short run would decrease as a result of the stimulus package. Or do you think it is more likely to be between 0 and 1 as Becker and Murphy suggest (GDP increases on net but at the expense of private sector activity).
Michael S.