1) At an initial point on the aggregate demand curve, the price level is 125, and real GDP is $10 trillion. When the price level falls to a value of 120, total autonomous expenditures increase by $800 billion. The marginal propensity to consume is 0.6. The level of real GDP at the new point on the aggregate demand curve is

A.)$14.4 trillion

B.)$12 trillion.

C.)$10.8 trillion

D.)$2 trillion

2) The marginal propensity to consume is equal to 0.50. An increase in household wealth causes autonomous consumption to rise by $30 billion.

Calculate by how much equilibrium real GDP will increase at the current price level, other things being equal.

Equilibrium real GDP will increase by _____billion.

(Enter your response as a whole number.)