Fill in the blank cells in the table below. Assume that the value of the MPC does not change as real GDP changes. Also assume that the values represent billions of 2009 dollars.
a. What is the value of the MPC?
b. What is the value of equilibrium real GDP?

Transcribed Image Text:

Unplanned Change in Inventories Consumption Government Purchases (G) Planned Aggregate Expenditure (ÃE) Real GDP Planned Investment (/) Net Exports (NX) (Y) (C) -$400 $9,000 $7,600 $1,200 1,200 1,200 1,200 $1,200 1,200 10,000 8,400 -400 11,000 1,200 -400 12,000 1,200 -400 -400 13,000 1,200 1,200