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