Jse the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Government Purchases (G) $3,250 $3,250 $3,250 $3,250 $3.250 Planned Real GDP (Y) Consumption (C) $7,500 $8,500 Investment (I) $1,000 $1,000 $9,500 $10,500 $11,500 $4,250 $4,750 $5,250 $5,750 $1,000 $1,000 $6.250 $1,000 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 S billion, so the new level of GDP will be Sbillion.
Jse the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Government Purchases (G) $3,250 $3,250 $3,250 $3,250 $3.250 Planned Real GDP (Y) Consumption (C) $7,500 $8,500 Investment (I) $1,000 $1,000 $9,500 $10,500 $11,500 $4,250 $4,750 $5,250 $5,750 $1,000 $1,000 $6.250 $1,000 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 S billion, so the new level of GDP will be Sbillion.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars.
Planned
Investment (1)
Government
Purchases (G)
$3.250
Net Exports
(NX)
-$500
Real GDP (Y)
Consumption (C)
$7,500
$8,500
$9,500
$10,500
$4,250
$4,750
$5,250
$5,750
$6,250
$1,000
$1,000
$1,000
$3,250
$3,250
$3,250
- $500
- $500
$1,000
- $500
$11,500
$1,000
$3,250
-$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.
Enter your answer in each of the answer boxes.
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