Effect on real GDP	$50 billion rise in government purchases of goods and services	$50 billion rise in government transfer payments
First round	$50 billion	$25 billion
Second round	$25 billion	$12.5 billion
Third round	$12.5 billion	$6.25 billion
•	•	•
•	•	•
•	•	•
Eventual effect	$100 billion	$50 billion

Table :

TABLE 13-1 Hypothetical Effects of a Fiscal Policy with Multiplier of 2