Question

The equilibrium level of GDP is ​$ 14,000 14,000 billion. The MPC is nothing ​(enter your response to two decimal places​). Suppose that net exports increase by​ $ billion. Using the multiplier​ formula, determine the new level of GDP. A ​$ billion increase in net exports leads to a change in spending of ​$ nothing ​billion, so the new level of GDP will be ​$ nothing billion.

Answer 1

Real GDP (Y) $10,000 $11,000 $12,000 $13,000 $14,000 Consumption (C) $5,500 ... The MPC is enter your rosponse to two decimal places). ... Using the multiplier formula, determine the new level of GDP. A $400 billion increase in net exports leads to a change in spending of billion, so the new level of GDP will be billion.

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