c. Given the original $20 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billiongreater at each level of GDP? Fill in the gray-shaded cells.Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) infront of those numbers.(1)(2)(3)(4)(5)(6)AggregateExpenditures,Private ClosedAggregateExpenditures,Open Economy,BillionsReal DomesticOutput (GDP = DI),BillionsExports,BillionsImports,BillionsNet Exports,BillionsEconomy, Billions$350$390$20$404004302040450470204050051020405505502040600590204065063020407006702040Net exports = $billionEquilibrium GDP = $billiond. What is the multiplier in this example?

real Domestic output (GDP = DI) billions Aggregate Expenditure, Private Closed Economy,Billions…

Answered: Net exports = $ |billion Equilibrium…

Business

Economics

Net exports = $ |billion Equilibrium GDP = $ |billion d. What is the multiplier in this example?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Study the graph below. When will the multiplier be biggest? Price Level AD1 AS AD3 AD2 GDP Select…

A: The aggregate demand refers to the total demand for all the goods and services produced in an…

Q: Discuss which of the following fall into the categories of consumption, investment, government…

A: Gross domestic product is the sum of the value added by all the production of goods and services in…

Q: Consider the hypothetical country of Pelee. Suppose that national income in Pelee is $30 billion,…

A: In the given question we are given with,national income(Y)= $30 billiontax(t)= $10 billion,…

Q: Germany injects $100 into the United States by purchasing new software. If the spending multiplier…

A: The spending multiplier means initial rise in the expenditure causes multiple rise in the income…

Q: Aggregate expenditure is 790. Income is 730 and consumption is 720, income increases to 750 and…

A: Investment can be calculated as follows: Aggregate…

Q: enditu

A: Gross domestic products includes all final goods and services which are being produced by the…

Q: he transfer payments multiplier is ________ than the government purchases multiplier because some…

A: Government spending multiplier = 1 / (1-MPC) Transfer payment multiplier = MPC / (1-MPC) Where MPC…

Q: Answer the following questions, which relate to the aggregate expenditures model: Instructions:…

A: GDP (gross domestic product) is records of the market value of total goods and service produced…

Q: Aggregate Expenditures 800 600 400 200 0 15 04 Income Refer to the above graph to answer this…

A: Aggregate demand is the sum of consumption, investment, government spending and net export. This…

Q: based on macroeconomic theory, one of the following four answers is a correct description of the…

A: The expenditure multiplier depicts the effects of changing autonomous spending on overall spending…

Q: Referring to this table, calculate the marginal propensity to consume. Type your response Output…

A: Marginal propensity to consume is a measure of change in consumption because of change in income or…

Q: The basic idea behind the multiplier is that an increase in GDP brings about an additional, larger…

A: Let I0 , G0 , and NX be the autonomous investment, government spending and net export of an economy…

Q: Will an economy with a high multiplier be more stable or less stable than an economy with a low…

A: In economical aspects, a multiplier extensively alludes to a monetary factor that, when expanded or…

Q: Explain how the multiplier affects equilibrium real GDP. Give examples

A: When talking about multiplier in economics, it can be said that it is the change in one variable due…

Q: The Finance Minister in Canada asked a policy analyst the following question "what value can the…

A: Multiplier refers to the economic factor that when changed cause change in the many other related…

Q: Calculate the Multiplier when the MPC is 0.97

A: Generally in the given question MPC is stated as = 0.97 Value of the multiplier needed to be…

Q: Assume: Y= C + I + G + NX C = 400 + (0.8)YD Io = 200 G = 300 +…

A: This change, net exports decrease as national income increases i.e. from -40 to -40-mY. This…

Q: No more than five sentence. Briefly describe/discuss what are the positive impact of the tourism…

A: One of the most important components of the global economy is tourism. It produces sales of billions…

Q: What is the multiplier effect?

A: Multiplier concept was developed by R.F. Khan in 1931.

Q: Draw a diagram and illustrate the effects of the following on the net exports function for the…

A: Hello. Since you have posted multiple parts of the question and not specified which part of the…

Q: 1. Based on the following information: C = 40 +0.7Yd, T = Tg-R, I = 150, G = 250, Tg = 50, R = 35 a.…

A: Given:- C=40+0.7YdT=Tg-RI=150G=250Tg=50R=35 Dear Student as you have posted multiple sub-parts of a…

Q: Please show in two side by side graphs the connection between the multiplier and the AE curve…

A: Aggregate expenditure is teh total demand or summation of consumption , investment , government…

Q: Suppose the government increases expenditures by $100 billion and the marginal propensity to consume…

A: The Marginal Propensity to Consume is a measure in economics that represents the proportion of an…

Q: How is it possible for consumption expenditure to be positive even when disposable income is zero?

A: The consumption function gives the relationship between consumption and disposable income.

Q: In Russia, the value of multiplier is 7 Calculate the value of MPS

A: The information being given is:- Multiplier = 7 Marginal propensity to save = ?

Q: If taxes ane decreased by $200 billion, given an MPC of .6, calculate the change in GDP. Give your…

A: The method of state receiving funds from its residents to compensate for basic utilities is known as…

Q: Complete the following table by completing the multiplier for each MPC listed MPC - 0.17 MPC -…

Q: QUESTION 4 The figure below shows the planned Aggregate Expenditure function for a hypothetical…

A: The aggregate expenditure function is AEp=1000+0.5Y This is ex-ante or planned expenditure. The GDP…

Q: What is the definition for the multiplier process

A: The multiplier is an economic factor that amplifies the impact of one variable on other variables.…

Q: THE AGGREGATE EXPENDITURE MODEL (IN THE SHORT RUN)YOU MUST SHOW YOUR CALCULATIONS IN THE SPACE…

A: Given: Initial equilibrium output = $13 trillion Government increases its spending to $2.7 trillion…

Q: Illustrate how changes in investment (or other components of total spending) can increase or…

A: Multiplier – Multiplier means that a change in economic factor leads to a change in another economic…

Question

c. Given the original $20 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billion
greater at each level of GDP? Fill in the gray-shaded cells.
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.
(1)
(2)
(3)
(4)
(5)
(6)
Aggregate
Expenditures,
Private Closed
Aggregate
Expenditures,
Open Economy,
Billions
Real Domestic
Output (GDP = DI),
Billions
Exports,
Billions
Imports,
Billions
Net Exports,
Billions
Economy, Billions
$350
$390
$20
$40
400
430
20
40
450
470
20
40
500
510
20
40
550
550
20
40
600
590
20
40
650
630
20
40
700
670
20
40
Net exports = $
billion
Equilibrium GDP = $
billion
d. What is the multiplier in this example?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Real GDP is $425 billion while the Real GDP where TE=TP is $475 billions. total, Expenditure (billions) TE-TH HEL th I 1 45 425 Q2 475 Q1 TP - TE total Production (billions) b) If Real GDP is $425 billion, what will happen to inventories, to firm's production and to the Real GDP? Inventories will decrease and Production will increase GDP increases to $475 billion and real
What is the relationship between the MPC and the multiplier?
Below is some data for a hypothetical economy: C = -232 + 0.8Y XN = 107 - 0.1Y I = 100 T = 340 G = 340 Refer to the information above to answer this question. What is the value of the expenditure multiplier? a. 1.43 b. 4 c. 3.33 d. 2.43
What is multiplier? Explain its forward and backward working
The multiplier model: Consumption spending refers to ________ spending on goods and services.
Calculate investment expenditure from the following data about an economy which in equilibrium: National income =$1000 Marginal propensity to save=$0.25 Autonomous consumption expenditure=$200
3. If the current equilibrium GDP value is $925,000 and investment spending decreases by $25,000 with an MPC of 0.8, solve for the new equilibrium GDP.
What is the multiplier effect? The multiplier is simply the ratio of the change in (r spending. Multiplying the initial change in spending by the multiplier gives you the amount of change in real GDP. G ) to the initial change in The multiplier effect can work in a positive or a negative direction. An initial increase in spending will result in a (smaller, larger) increase in real GDP, and an initial decrease in spending will result in a larger (increase, decrease ) in real GDP. The multiplier magnifies the fluctuations in economic activity initiated by changes in investment spending, net exports, government spending, or consumption spending. The multiplier is related to the marginal propensities. The MPC is (directly, inversely ) related to the size of the multiplier. The MPS is (directly, inversely ) related to the size of the multiplier. What will multiplier and MPS be when the MPC is .9, and 0.5? MPC MPS Multiplier .9 .5 How much of a change in GDP will result if firms increase…
Consider the graph below: Planned Aggregate Expenditure (PAE, billions of $) 1000 900 800 700 600 500 400 300 200 100 0 100 200 300 400 500 600 700 800 1 PAE 2 PAE Y PAE₁ 900 1000 Actual Aggregate Expenditure (Output or GDP, billions of $) a. What is the expenditure multiplier in this economy? b. What is the marginal propensity to consume in this economy?
What do you mean by multiplier