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Income Consumption $200 $240 $400 $400 $600 $560 $800 $720 $1,000 $880
The table above shows the income and consumption data for Jamestown. If the government increases spending by $100 and increases taxes by $100 to balance the budget, what is the value of the government spending multiplier and the impact on Jamestown's gross domestic product?
Spending Multiplier / Gross Domestic Product
2 / Increase by $200
2 / Remain the same
5 / Increase by $500
5 / Remain the same
5 / Increase by $100
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