Using the following table, answer the questions below. The numbers in the table are in billions of dollars. Total 3 marks

Real GDP	Consumption	Planned Investment	Government Purchases	Net Exports
5 000	4850	450	250	-50
6 000	5600	450	250	-50
7 000	6350	450	250	-50
8 000	7100	450	250	-50
9 000	7850	450	250	-50

i) Calculate the aggregate expenditure for each level of real GDP (0.25 marks)

ii) Calculate the unplanned change in inventories for each level of real GDP (0.25 marks)

iii) Mention what will happen to real GDP at each level of given real GDP (Hint: mention whether it will increase, decrease or be in equilibrium). (0.25 marks)

iv) Mention what will happen to unemployment at each level of given real GDP (Hint: mention whether it will increase, decrease, or no change). (0.25 marks)

Real GDP	(i) Aggregate Expenditure	(ii) Unplanned Change in Inventories	(iii) Real GDP will ...	(iv) Unemployment will ...
5000
6000
7000
8000
9000

b) Calculate the Marginal propensity to consume (mpc)

c) Calculate the simple expenditure multiplier

d) Suppose Net exports decreased by $150 billion. What will be the new equilibrium level of real GDP? You must use the multiplier formula to determine the answer. Show the workings.