Reference no: EM13894195
The data in columns 1 and 2 in the table below are for a private closed economy.
Instructions: For all parts, enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. $ billion.
b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill in the gray shaded cells in columns 5 and 6.
Determine the equilibrium GDP for the open economy. $ billion.
What is the change in equilibrium GDP caused by the addition of net exports? $ billion.
c. Given the original $30 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billion less at each level of GDP? Fill in the gray shaded cells.
Equilibrium GDP = $ billion.
d. What is the multiplier in this example?.
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