Consider an open economy with a current population of 0.55 million people, and where the potential GDP is $3.24 billion. Consumer expenditure represented by the following equation: C = 60 + 0.75DI. Exports are constant at $500 million, and investors want to spend $400 million at every level of income. The government purchases are $300 million, imports are constant at $450 million, and taxes are $200 million. (Question 10 of 12) Now, consider that investors become optimistic about the country's future, and raise their investment to $565 million in the following period. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced an increase of 20% in its population. As a result of these events, what is the current population level? (report your answer at 2 decimal places and in millions of people)
Consider an open economy with a current population of 0.55 million people, and where the potential GDP is $3.24 billion. Consumer expenditure represented by the following equation: C = 60 + 0.75DI. Exports are constant at $500 million, and investors want to spend $400 million at every level of income. The government purchases are $300 million, imports are constant at $450 million, and taxes are $200 million. (Question 10 of 12) Now, consider that investors become optimistic about the country's future, and raise their investment to $565 million in the following period. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced an increase of 20% in its population. As a result of these events, what is the current population level? (report your answer at 2 decimal places and in millions of people)
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Consider an open economy with a current population of 0.55 million people, and where the potential
GDP is $3.24 billion. Consumer expenditure represented by the following equation: C = 60 +
0.75DI. Exports are constant at $500 million, and investors want to spend $400 million at every level
of income. The government purchases are $300 million, imports are constant at $450 million, and
taxes are $200 million.
(Question 10 of 12)
Now, consider that investors become optimistic about the country's future, and raise their investment
to $565 million in the following period. At the same time, given the birth rate, mortality rate, and net
migration, the economy experienced an increase of 20% in its population.
As a result of these events, what is the current population level? (report your answer at 2 decimal
places and in millions of people)
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