Consider an economy where the natural rate of unemployment rate is 5% and real GDP at full employment is $3.50 billion. Consumers' spending behavior is described by the equation: C = 150+ 0.75DI, while firms investment behavior is described by the equation 1 = 300+ 0.2Y - 750r. Trade is allowed and currently imports are defined by the equation IM = 250+ 0.2Y. In 2016, exports is fixed at $300 million and government spending is fixed at $800 million. Furthermore, in the same year, tax rate is 20% and the interest rate is 8%. (Question 2 of 15) What is the trade balance (in millions of dollars) in 2016? (report your answer to 2 decimal places)

Consider an economy where the natural rate of unemployment rate is 5% and real GDP at full employment is $3.50 billion. Consumers' spending behavior is described by the equation: C = 150+ 0.75DI, while firms investment behavior is described by the equation 1 = 300+ 0.2Y - 750r. Trade is allowed and currently imports are defined by the equation IM = 250+ 0.2Y. In 2016, exports is fixed at $300 million and government spending is fixed at $800 million. Furthermore, in the same year, tax rate is 20% and the interest rate is 8%. (Question 2 of 15) What is the trade balance (in millions of dollars) in 2016? (report your answer to 2 decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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