K Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars Planned Investment () $1.000 $1,000 Real GDP (Y) $12,000 $13,000 $14.000 $15,000 $16,000 Consumption (C) $10.100 $10,900 $11,700 $12,500 $13,300 $1,000 $1,000 $1,000 The equilibrium level of GDP is bon The MPC is (enter your response to two decimal places) Suppose that net exports increase by $400 billion Using the multiplier formula determine the new level of GDP billion so the new level of GDP will be A5400 billion increase in net exports leads to a change in spending of billon Government Purchases (G) $2.000 $2.000 $2,000 $2,000 $2.000 Net Exports (NX) $500 -$500 -$500 -$500 -$500
K Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars Planned Investment () $1.000 $1,000 Real GDP (Y) $12,000 $13,000 $14.000 $15,000 $16,000 Consumption (C) $10.100 $10,900 $11,700 $12,500 $13,300 $1,000 $1,000 $1,000 The equilibrium level of GDP is bon The MPC is (enter your response to two decimal places) Suppose that net exports increase by $400 billion Using the multiplier formula determine the new level of GDP billion so the new level of GDP will be A5400 billion increase in net exports leads to a change in spending of billon Government Purchases (G) $2.000 $2.000 $2,000 $2,000 $2.000 Net Exports (NX) $500 -$500 -$500 -$500 -$500
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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