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What was the main finding of Ramey's study on government expenditure multipliers?
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Macroeconomics

Macroeconomics


Edition: 3rd
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According to Ramey's study, the government spending multiplier is estimated to lie between 0.6 and 1.2. To arrive at this estimate, Ramey compared the growth of GDP after one large government spending shock to the growth of GDP in a period that did not experience such a shock.
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