Equations for C, I, G, and NX Are Given Below

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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Definitions:

Margin of Error

Margin of Error is a statistic expressing the amount of random sampling error in a survey's results, indicating the potential variability in the results.

Confidence Intervals

An interval of values, sourced from statistical analyses of a sample, that is conjectured to include the value of a mysterious population parameter.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of trials.

Sampling Distribution

Sampling Distribution is the probability distribution of a given statistic based on a random sample, used to make inferences about a population.