More Evidence on Why the Stimulus Didn’t Work
October 31, 2010 at 23:40 PM EDT
Polls show that most Americans don’t believe that the stimulus package worked, but debate continues among economists. The most debated issue is the size of government purchases multiplier. Suppose that the government purchases multiplier is 1.5. Then Economics 1 students learn that the change in GDP due to an increase in government purchases is found [...]
