Question

Suppose that you have the following information for an economy:

Marginal propensity to consume - MPC	0.80
Autonomous consumption - A	$500
Planned investment - PI	$600
Net exports - NX	-$400
Government spending - G	$300

You will need this information for the questions that follow.
Part 1:

When real GDP is equal to $4,500, aggregate expenditure is equal to   $  .

Part 2:

When real GDP is equal to $5,000, aggregate expenditure is equal to   $  .

Part 3:

When real GDP is equal to $5,500, aggregate expenditure is equal to   $  .

Part 4:

Given your answers above, the equilibrium level of real GDP is

Answer 1