The Australian federal government announces a major investment package of AU4.8billiondedicatedtoupgradinggreenhydrogenproductionfacilitiesacrossthecountry.Economicmodelssuggestthatoncethisinjectionfullycirculatesthroughtheeconomy,theresultingtotalincreaseinAustralia′sgrossdomesticproduct(GDP)willbeAU 4.8 billion dedicated to upgrading green hydrogen production facilities across the country. Economic models suggest that once this injection fully circulates through the economy, the resulting total increase in Australia's gross domestic product (GDP) will be AU4.8billiondedicatedtoupgradinggreenhydrogenproductionfacilitiesacrossthecountry.Economicmodelssuggestthatoncethisinjectionfullycirculatesthroughtheeconomy,theresultingtotalincreaseinAustralia′sgrossdomesticproduct(GDP)willbeAU 20.4 billion.
Calculate the value of the multiplier for this investment program. Show your working.
75 exam-style questions on Edexcel A A Level Economics 2.4 National income, covering 2.4.1 National income, 2.4.2 Injections and withdrawals, 2.4.3 Equilibrium levels of real national output, and 2.4.4 The multiplier. Each one has a worked solution and a mark scheme showing where the marks go.