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

question 240

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 2,500? 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

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