a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. 2$ 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. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the equilibrium GDP for the open economy? $ billion What is the change in equilibrium GDP caused by the addition of net exports? billion
a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. 2$ 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. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the equilibrium GDP for the open economy? $ billion What is the change in equilibrium GDP caused by the addition of net exports? billion
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The data in columns 1 and 2 in the table below are for a private closed economy.
(1)
(2)
(3)
(4)
(5)
(6)
Aggregate
Expenditures,
Private Closed
Aggregate
Expenditures,
Private Open
Economy, Billions
Real Domestic
Output (GDP = DI),
Billions
Exports,
Billions
Imports,
Billions
Net Exports,
Billions
Economy, Billions
$350
$390
$20
$30
400
430
20
30
450
470
20
30
500
510
20
30
550
550
20
30
600
590
20
30
650
630
20
30
700
670
20
30
a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.
2$
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.
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
What is the equilibrium GDP for the open economy?
2$
billion
What is the change in equilibrium GDP caused by the addition of net exports?
2$
billion
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