GDP	Taxes	DI	C	I	G	(X - IM)	Total Real Expenditure (TE)
1,480	400	1060	870	180	520	30
1,600	400	1160	960	180	520	30
1,720	400	1260	1050	180	520	30
1,840	400	1360	1110	180	520	30

What is the equilibrium GDP in this economy?__________

What is the MPC? (show calculation)________________

What is the simple spending multiplier? (show calculation)________

Suppose government purchases were reduced by $70, whereas the price level remained unchanged. What would be the new equilibrium? (show calculation)

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