Table : TABLE 15-1 Hypothetical Effects of a Fiscal Policy with Multiplier of 2
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