Use the information in the following table to answer the questions. Assume that the values represent billions of 2009 dollars.
| Real GDP(Y) |
Consumption ( C) |
Planned Investment (I) |
Government Purchases(G) |
Net Exports(NX) |
| $8,000 |
$7,300 |
$1,000 |
$1,000 |
$500 |
| 9,000 |
7,900 |
1,000 |
1,000 |
500 |
| 10,000 |
8,500 |
1,000 |
1,000 |
500 |
| 11,000 |
9,100 |
1,000 |
1,000 |
500 |
| 12,000 |
9,700 |
1,000 |
1,000 |
500 |
a. What is the equilibrium level of real GDP?
b. What is the MPC?
c. Suppose net exports increase by $400 billion. What will be the new equilibrium level of real GDP? Use the multiplier formula to determine your answer.