Final answer:
A $500 billion stimulus, using a multiplier of 2.27, significantly exceeds the required change in spending to increase the equilibrium output from 5,454 to 6,000, which is calculated to be approximately 240.53 billion.
Step-by-step explanation:
The concept in question is the multiplier effect in economics, more specifically within the context of fiscal policy and government spending as part of a macroeconomic framework. The student is asked how a $500 billion stimulus check increases the equilibrium output, given the multiplier. Using the multiplier formula provided (multiplier equation = 2.27), the increase in government spending needs to be calculated to ascertain the total effect on output (Y).
To determine the actual increase in equilibrium output, we apply the multiplier effect formula. If the equilibrium output needs to rise from 5,454 to 6,000, then the change in output is 6,000 - 5,454, which equals 546. With the multiplier of 2.27, the change in spending (Stimulus) would then be 546 / 2.27, resulting in approximately 240.53. This means that a $500 billion in stimulus checks would result in an increase in equilibrium output significantly more than required to achieve the output level of 6,000, based on the multiplier effect.