Find the effect on equilibrium real GDP

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Reference no: EM131101257

Assume the mpc = 0.6 for an economy. Showing work, please find the effect (if any) on equilibrium real GDP of each of the following events (other things remaining the same):

a. Government purchases increase from 1,500 to 1,600.

b. Net taxes fall from 1,500 to 1,400.

c. Planned investment falls from 900 to 800.

Reference no: EM131101257

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