Use the information in the following table to answer the questions. Assume that the values represent billions of 2009 dollars.

a. What is the equilibrium level of real GDP?
b. What is the MPC?
c. Suppose net exports increase by $400 billion. What will be the new equilibrium level of real GDP? Use the multiplier formula to determine your answer.

Real Planned Government Net Consumption Investment (C) Purchases (G) GDP Exports (NX) (Y) (1) $1,000 $8,000 $7,300 $1,000 -$500 9,000 7,900 1,000 1,000 -500 8,500 10,000 1,000 1,000 -500 1,000 11,000 9,100 1,000 -500 12,000 9,700 1,000 1,000 -500