Please no written by hand and no emage Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domestic and foreign demand for domestic goods. a. Variable Behavioral equations ($) Exports 0.3Y*-200e Imports 0.1Y+300e Real exchange rate 0.45 Total output 1,000 Foreign output 500 Savings 9,44Yd+300 Taxes 0.25Y Government spending 400 Investment 1,000 Net income from abroad 0.1NX Net transfers from abroad 100 b. If there is an improvement in the government budget balance by 4% the country will witness a () and this increased current account balance would be Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domesticand foreign demand for domestic goods.VariableExportsImportsReal exchange rateTotal outputForeign outputSavingsTaxesGovernment spendingInvestmentNet income from abroadNet transfers from abroadBehavioral equations ($)*0.35Y - 250€0.11Y+ 400€two decimal places.)0.551,5001,0000.55Y+3500.3Y8001,2000.2NX200If there is an improvement in the government budget balance by 5%, the country will witness aand this increased current account balance would be $(Round your answer to

Aggregate demand refers to the total demand for commodities and services made by all the economic…

Answered: Consider an open economy, where the…

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 no written by hand and no emage

Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domestic and foreign demand for domestic goods. a. Variable Behavioral equations ($) Exports 0.3Y*-200e Imports 0.1Y+300e Real exchange rate 0.45 Total output 1,000 Foreign output 500 Savings 9,44Yd+300 Taxes 0.25Y Government spending 400 Investment 1,000 Net income from abroad 0.1NX Net transfers from abroad 100 b. If there is an improvement in the government budget balance by 4% the country will witness a () and this increased current account balance would be

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