Use the information in the following table to answer the, Ask an Expert

Economics

Use the information in the following table to answer the questions. Assume that the values represent billions of 2009 dollars.

Real GDP(Y)	Consumption ( C)	Planned Investment (I)	Government Purchases(G)	Net Exports(NX)
$8,000	$7,300	$1,000	$1,000	$500
9,000	7,900	1,000	1,000	500
10,000	8,500	1,000	1,000	500
11,000	9,100	1,000	1,000	500
12,000	9,700	1,000	1,000	500

a. What is the equilibrium level of real GDP?

b. What is the MPC?

c. Suppose net exports increase by $400 billion. What will be the new equilibrium level of real GDP? Use the multiplier formula to determine your answer.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91748906

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