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 |