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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please do the work handwritten if you can and include the names of the formulas used and any other rules that need to be followed when solving these problems.
2. Imports and Exports Now we allow for international trade. Use the following information from problem 1: C = 400 + (8/9)*DI I= 300 G= 800 T= (1/2)*Y. Suppose that exports are constant at X = 300. Let imports be a fraction of real income: M = (1/9) * Y. a. Give intuition for why imports M are positively related to national income Y in the equation above. b. Suppose that national income increases by $1. How much will spending on imports increase (the marginal propensity to import) in this case? c. Compute the equilibrium level of national income under international trade. d. Suppose that government spending increases by $120. i) Compute the new equilibrium national income. ii) Based on your numerical answer to (i), calculate the change in national income from a one dollar increase in government spending. iii) Derive the new fiscal multiplier from an increase in government spending using an algebraic equation. Compare to Problem 2.d.(ii). Compare to Problem 1.c.(v). e. Trade…
BOT shows a deficit of 5000 dollars and value of imports are 9000 dollars. What is the value of export.
My dear bro not hand written.
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