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5. For this exercise we will assume that there is a government and that the country is open to international trade. This will have an effect on the formulas for GDP and planned aggregate expenditure (a) Fill in the following table and indicate in the last column whether the GDP should decrease or increase to reach its equilibrium value NX AEplannedunplanned Rcal GDP $8, 000 $6, 200$1,500$1,500 $9,000 $6,850S1,500S1,500$500 $10, 000$%7,500$1,500$1,500$500 $11,000 $8,150S1,500$1,500-$500 $12,000$8, 800$1,500$1,500$500 planned 500 (b) Compute the MPC. (Again, recall that in this situation we assume the existence of a government.)

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