Answer to Question #250387 in Macroeconomics for Lebone Mashele

Question

Suppose the level of output that creates full employment in the ec3is 1800.Using the multiplier of 10, determine the level of investment spending that would create full employment in this economy

Answer 1

$investment\space spending=multiplier\times output\\=10\times1800=18000$

Therefore, the level of investment spending that would create full employment in this economy is 18000