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5. Assume the following values apply to the economy. Autonomous consumption (A) is $150 billion MPC is 0.8 Planned investment expenditure is $45 billion across
5. Assume the following values apply to the economy. Autonomous consumption (A) is $150 billion MPC is 0.8 Planned investment expenditure is $45 billion across all income levels Government spending is $80 billion across all income levels . Net Exports are $25 billion across all income levels A) Fill in the missing values in the following table (all dollars are in billions) Real Autonomous Consumption |Planned | Government Net AE AE - Y GDP Consumption (C) Inv (PI) Spending Exports (Y) (A) (G) (NX) $1,000 $1,500 $2,000 $2,500 $3,000 B) What is the equilibrium GDP level for this country as implied by the AE model? How is this equilibrium determined? C) What spending multiplier is implied by the MPC of 0.8? D) At the current equilibrium GDP level, the unemployment rate is relatively high. Therefore, the government proposes to double the level of government spending (increase G to $160 billion). What is the new equilibrium level of real GDP
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