1)-Let's verify the graphical analysis in Figure 8.14. The unit of measure is trillions of dollars. Consumption spending is 1+0.6125 GDP, I = 1.2, G = 1.0, Ex = 1.0, and Im = 1.1. Find the equilibrium level of GDP.

2)-Suppose that initially C = 2 + 0.75 GDP, I = 3, G = 2, and NX = 1. Compute the equilibrium value of spending.

3)-Using the setup from the previous question, compute the change in equilibrium GDP if net exports increase by 0.5.

4)-If consumption is given by 2 + 0.5 GDP, what is the spending multiplier?

5)-If the marginal propensity to consume is 0.8, what is the spending multiplier?