The following equations describe consumption, investment, government spending, taxes, and net exports in the country of Economika. C=400+0.90(Y-T) In Economika, equilibrium GDP is equal to $ (Round your asnwer the nearest dollar.) If real GDP in Economika is currently $11,050, which of the following is true? A. There will be an unplanned increase in inventories, and real GDP will increase next period. OB. There will be an unplanned decrease in inventories, and real GDP will increase next period. O C. There will be an unplanned decrease in inventories, and real GDP will decrease next period. D. There will be an unplanned increase in inventories, and real GDP will decrease next period. O E. There will be no unplanned change in inventories, and real GDP will stay the same next period. 1=500 G=550 T=550 X=50

a) About Country A, what is your estimate of the country's marginal propensity to consume (MPC) based on the following information on its GDP (Y) and the components thereof (in billion dollars) for two past years? Show calculation. Year 1 Year 2 c) GDP C I 11200 8000 2200 12000 8500 2400 G 800 880 The next few parts are about Country B, whose government plans to cut taxes by $24 billion as a measure to fight the current recession. The marginal propensity to consume (MPC) in Country B is known to be 34. There will be no crowding-out effect. e) NX 200 220 b) What is the initial effect (in billion dollars) of the tax cut on Country B's aggregate demand? (The "initial effect" here refers to the effect on AD after only the first round of increased spending.) What is the total effect of the tax cut on aggregate demand? Explain why it is different from the initial effect. d) How does the total effect of this $24 billion tax cut compare to the total effect of a $24 billion increase in…

3. If the current equilibrium GDP value is $925,000 and investment spending decreases by $25,000 with an MPC of 0.8, solve for the new equilibrium GDP.

Use the information below to calculate the equilibrium level of GDP. C=500+0.5Yd, I=300, G=2000, T=600. b. What happens to the equilibrium level of GDP if consumption decreases to 400?