Multiple Choice
Equations for C, I, G, and NX are given below.If the equilibrium level of GDP is $32,000, what will the new equilibrium level of GDP be if government spending increases to 2,000? C = 5,000 + (MPC) Y
I = 1,500
G = 2,000
NX = -500
A) $32,500
B) $34,000
C) $38,000
D) $42,000
E) Not enough information is given to answer the question.
Correct Answer:

Verified
Correct Answer:
Verified
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