I understand the MPC formula which is:

Multiplier = 1/1-MPC, but I don't understand how to plug in all of the extras..help!

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

Multiplier = 1/1-MPC, but I don't understand how to plug in all of the extras..help!

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

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