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    GDP and Net exports

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    Answer the following questions based on the following information: Please provide a step by step explanation.

    See table with data:

    a. i. Compute the GDP
    ii. Compute the net exports

    b. Assume the government cuts its purchases by $120 billion. As a result, the budget deficit is reduced by $40 billion, private domestic saving decreases by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion. By how much has national income (Y) changed?

    c. Suppose that the economy starts at equilibrium and the MPC = 0.75. What would be the effect of a $300 increase in government spending once all the rounds of the multiplier process are complete?
    d. Suppose that the economy starts at equilibrium and the MPC = 0.8. What would be the effect of a 300 increase in taxes once all the rounds of the multiplier process are complete?

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    https://brainmass.com/economics/general-equilibrium/gdp-net-exports-253783

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    The compute GDP and Net exports in the case.

    $2.19