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The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $66.2 billion during the second quarter of 2014.

If the marginal propensity to consume is 0.52, by how much will real GDP change in response? If there are no other changes to autonomous spending other than the increase in consumer spending in part a, and unplanned inventory investment, IUnplanned, decreased by $50 billion, what is the change in real GDP? GDP at the end of the first quarter in 2014 was $16,014.1 billion. If GDP were to increase by the amount calculated in part b, what would be the percent increase in GDP?

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