I am asked to show the possible costs and gains to the UK of holding the Olympic games in London in 2012 by using a graphical analysis of the multiplier model.© BrainMass Inc. brainmass.com December 15, 2020, 12:06 pm ad1c9bdddf
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iam asked to show the possible costs and gains to the UK ,of holding the Olympic games in London in 2012 by using a graphical analysis of the multiplier model.
Bid Credits: 20 Deadline: December 6, 2005, 10:11 am EST
The cost of staging the London Olympic Games in 2012 is mainly the construction costs. It is estimated that in London 2012, the body running the bid, which amounts to £8.7bn of capital spending is needed . But £6 bn is being spent on infrastructure, like roads and railways.
The gains will mainly come from the seasonal jobs created in the running of the games, which would boost the economy. Half a million extra tourists are expected to spend a lot of money on visiting the games.
However, the overall effect of costs and gains on economy depends largely upon the multiplier effects of government spending and fiscal policies of U.K. government.
As with an autonomous increase in investment spending (examined in the last lecture), a given increase in government spending causes an increase in real GDP that is ...
Ramifications of the Olympic games in London in 2012 are suggested. The expert provides a graphical analysis of the multiplier model.