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Calculate the expenditure multiplier

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Reference no: EM133125284

The government of South Korea announced a $29 billion (35.3 trillion won) fiscal stimulus package The goal is to create 550,000 new jobs and boost social safety nets. Source asiatimesfinancial.com, June 3, 2020

1. If the slope of the AE curve is 0.8, calculate the expenditure multiplier.

2. If the slope of the AE curve is 0.8, calculate the immediate change in aggregate planned expenditure and the change in real GDP of South Korea in the short run if the price level remains unchanged.

Reference no: EM133125284

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