The data in columns 1 and 2 in the table below are for a private closed economy.(1) Real DomesticOutput (GDP - DI),Billions(2) AggregateExpenditures,Private ClosedEconomy,Billions(5) NetExports,Billions(6) AggregateExpenditures,Private OpenEconomy, Billions(3) Exports,Billions(4) Imports,Billions$300$340$30$203503803020400420302045046030205005003020550540302060058030206506203020a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.billionb. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill inthe 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 anegative sign (-) in front of those numbers.What is the equilibrium GDP for the open economy?billionWhat is the change in equilibrium GDP caused by the addition of net exports?billionc. Given the original $30 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10billion less at each level of GDP? Fill in the gray-shaded cells.

Definition: A private closed economy is a sort of economy that is driven by buyer spending and…

Answered: a. Use columns 1 and 2 to determine the…

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a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. 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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