What is gdp in each economy

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Consider a world with three equal-sized economies (A, B, and C) and three goods (clothes, cars, and computers). Assume that consumers in all three economies want to spend an equal amount on all three goods.The value of production of each good in the three economies is given in the table below.

A B CC

Clothes 10 0 5
Cars 5 10 0
Computers 0 5 10

a) What is GDP in each economy? If the total value of GDP is consumed and no country borrows from abroad, how much will consumers in each economy spend on each of the goods?

b)If no country borrows from abroad, what will be the trade balance in each country? What will be the pattern of trade in this world (i.e., which good will each country export and to whom)?

Reference no: EM132550307

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