What will gdp be in new equilibrium

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Q. what might fed do if economy is slowing down?

How does fed control amount of money banks can loan?

Does Federal Reserve prosecute nation's consumers?

Q. I understand MPC formula which is:
Multiplier = 1/1-MPC but I don't understand how to plug in all of extras.

Suppose that GDP is currently $25,000 and marginal propensity to consume is .50. If autonomous investment increases by $5,000, what will GDP be in new equilibrium?

Reference no: EM1372322

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