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Unformatted text preview: Expenditure Multiplier ISLM Model Answer: the expenditure multiplier. Real GDP actually fell by $352B (from $1184B to $832B, in
2000 dollars), a multiple of the drop in investment. 1929-1933: investment spending fell by $194B (from $232B
to $32B, in 2000 dollars). Keynes developed his framework to understand the Great
Depression. The Expenditure Multiplier Aggregate Output ...
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This note was uploaded on 02/14/2012 for the course ECON 3310 taught by Professor Dix during the Fall '08 term at York University.
- Fall '08