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Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Real GDP (Y) $5,000 $6,000
Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Real GDP (Y) $5,000 $6,000 $7,000 $8,000 $9,000 Consumption (C) Planned Investment (I) Government Purchases (G) Net Exports (NX) $3,000 $1,000 $2,500 -$500 $3,500 $1,000 $2,500 -$500 $4,000 $1,000 $2,500 -$500 $4,500 $1,000 $2,500 -$500 $5,000 $1,000 $2,500 -$500 The equilibrium level of GDP is $billion. The MPC is (enter your response to two decimal places). Suppose that net exports increase by $200 billion. Using the multiplier formula, determine the new level of GDP. A $200 billion increase in net exports leads to a change in spending of $ billion, so the new level of GDP will be $ billion.
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