Respuesta :
The eventual effect on real GDP if the government increases its purchases of services and goods by $80,000 will be $320,000. It can be calculated by multiply the value of product and multiplier.
To measure a comprehensive of U.S. economic activity is known as gross domestic product (GDP). GDP measures the cost of the end items and services produced in the United States (without double counting the intermediate goods and services used up to produce them).
To find the amount of GDP we can use the GDP formula that is shown below:
GDP = the value of product x multiplier
where the value of product = $80,000
To know the value of multiplier, we can use this formula
Multiplier = 1 : (1 - MPC)
Marginal propensity to consume (MPC) = 0.75.
hence,
multiplier = 1 : (1 - 0.75)
multiplier = 1 : 0.25
multiplier = 4
GDP = the value of product x multiplier
GDP = $80,000 x 4 = $320,000
So, the GDP will be $320,000
Learn more about gross domestic product (GDP) at https://brainly.com/question/16907223
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