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    Exam 8: Aggregate Expenditure and Output in the Short Run
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    Equations for C, I, G, and NX Are Given Below
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Equations for C, I, G, and NX Are Given Below

Question 215

Question 215

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.

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