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Consider the diagram to the right, which applies to a nation with no government spending, taxes, and net exports. Use the information in the diagram

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Consider the diagram to the right, which applies to a nation with no government spending, taxes, and net exports. Use the information in the diagram to answer the following questions. The marginal propensity to save for this economy is The present level of planned investment spending for the present period is $D trillion. The equilibrium level of real GDP forthe present period is $:| trillion. The equilibrium level of saving for the present period is 55:] trillion. If planned investment spending for the present period increases by $50 billion, the resulting change in equilibrium real GDP will be $|:| trillion. If other things, including the price level, remain unchanged, the new equilibrium level of real GDP will be 3|: trillion. Planned C, | ii lilirll 4567891011121314 Real GDP ($ trillions)

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