Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes. Also assume that the values represent billions of 2009 dollars.
| Real GDP(Y) |
Consumption (C) |
Planned Investment(I) |
Government Purchases(G) |
Net Exports(NX) |
Planned Aggregate Expenditure(AE) |
Unplanned Change in Inventories |
| $9,000 |
$7,600 |
$1,200 |
$1,200 |
-$400 |
_____
|
_____ |
| 10,000 |
8,400 |
1,200 |
1,200 |
-400 |
_____ |
_____ |
| 11,000 |
_____ |
1,200 |
1,200 |
-400 |
_____ |
_____ |
| 12,000 |
_____ |
1,200 |
1,200 |
-400 |
_____ |
_____ |
| 13,000 |
_____ |
1,200 |
1,200 |
-400 |
_____ |
_____ |
a. What is the value of the MPC?
b. What is the value of equilibrium real GDP?