3) Show AD curve for closed and open economy and derive trade balance (NX) curve from there. Explain graphically how an expansionary fiscal policy may not help a low income country eliminate trade deficit. What should be done in such a case? Clearly indicate the changes.

India ranked 8th in size 0f trade deficit The tenure 0f the previ0us g0vernment, fr0m 2013 t0 2018, witnessed a skyr0cketing current acc0unt deficit as it increased fr0m $2.5 billi0n in FY13 t0 $18.9 billi0n in FY18. The maj0r driver was the trade deficit, which widened fr0m $19.2 billi0n in 2012 t0 $35.6 billi0n in 2017, acc0rding t0 data extracted fr0m the ITC’s Trademap.0rg. Imp0rts increased fr0m $43.8 billi0n in 2012 t0 $57.4 billi0n in 2017 and exp0rts decreased fr0m $24.6 billi0n in 2012 t0 $21.9 billi0n in 2017. Between July 2014 and June 2015, REER had increased by 8.83%. It increased by 5.54% in the pri0r fiscal year, FY14. In simpler terms, the rupee was kept ab0ve its equilibrium value between June 2013 and June 2018, making it cheaper t0 purchase g00ds fr0m 0ther c0untries. Furtherm0re, exp0rters l0st their c0mpetitiveness against f0reign c0mpetit0rs in the gl0bal market. T0day, with the rupee cl0ser t0 its equilibrium value, exp0rts have increased. This has p0sitively…

he news headline "Consultants replacing high school counselors" deals with the A. how B. what and for whom OC. why OD. what and how OE. for whom The news headline "The government must cut its budget deficit by increasing taxes" deals with the OA. what and for whom OB. for whom OC. what OD. what and how OE. why The news headline "Asteroid mission canceled" deals with the OA. where OB. for whom C. what and how questions of economics. OD. what OE. how questions of economics. questions of economics.

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Consider a closed economy. If national saving is 1000, GDP is 6000, andconsumption is 4500. Further assume that the government has a deficit of 400. Iftransfer and net interest payment is 400, the tax revenue is ________ and privatesaving is __________.

Generally, a larger Canadian trade deficit is accompanied by A. decreased borrowing by the Canadian government. OB. a smaller Canadian national debt. C. a larger Canadian federal government budget deficit. O D. a smaller Canadian federal government budget deficit.

The us government has shutdown a number of times in recent history. Explain how a government shutdown will affect the variables inthe national investment and savings identity. Could the shut down affect the governement budge deficit?

Explain how a shift from a government budget deficit to a budget surplus might affect the exchange rate.

ts that higher deficits lead to higher interest iuontmont Which of the following is

Question 5 What is meant by "a tariff on imports?" Summarize the domestic effect of a tariff on the price of imported goods? Question 6 What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal policy to stimulate consumer spending. (You must use the terms disposable income and demand). Question 7 What is meant by economic growth and why is it one of the most important goals macroeconomists seek to achieve? In your explanation, show the relationship between production, consumption, and investment in periods of economic growth? Question 8 What is meant by the "National Debt?" Explain why the "National Debt" has been both a"benefit and a burden". Give one example showing a benefit and one example that shows the "National Debt" is a burden.