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The equilibrium level of real GDP for this economy is $400 billion. If Ig changes to $30 billion, the new equilibrium level of real GDP

The equilibrium level of real GDP for this economy is $400 billion.

If Ig changes to $30 billion, the new equilibrium level of real GDP is $300 billion.

The change in equilibrium real GDP due to the change in Ig is -$100 billion.

The size of the multiplier, calculated as 111MPC1, is 3.33.

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