The data in columns 1 and 2 in the table below are for a private closed economy. (1) (2) (3) (4) (5) (6) Real Domestic Output (GDP = DI), Billions Aggregate Expenditures, Private Closed Economy, Billions Aggregate Expenditures, Private Open Economy, Billions Exports, Billions Imports, Billions Net Exports, Billions $150 $190 $30 $20 200 230 30 20 250 270 30 20 300 310 30 20 350 350 30 20 400 390 30 20 450 430 30 20 500 470 30 20 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. billion b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill in the 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 a negative sign front of those numbers. What is the equilibrium GDP for the open economy? billion What is the change in equilibrium GDP caused by the addition of net exports? billion 88888| %24 %24 %24

The data in columns 1 and 2 in the table below are for a private closed economy. (1) (2) (3) (4) (5) (6) Real Domestic Output (GDP = DI), Billions Aggregate Expenditures, Private Closed Economy, Billions Aggregate Expenditures, Private Open Economy, Billions Exports, Billions Imports, Billions Net Exports, Billions $150 $190 $30 $20 200 230 30 20 250 270 30 20 300 310 30 20 350 350 30 20 400 390 30 20 450 430 30 20 500 470 30 20 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. billion b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill in the 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 a negative sign front of those numbers. What is the equilibrium GDP for the open economy? billion What is the change in equilibrium GDP caused by the addition of net exports? billion 88888| %24 %24 %24

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter9: The Keynesian Model In Action

Section: Chapter Questions

Problem 3SQ

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Question

The data in columns 1 and 2 in the table below are for a private closed economy.
(1)
(2)
(3)
(4)
(5)
(6)
Real Domestic
Output (GDP = DI),
Billions
Aggregate
Expenditures,
Private Closed
Economy, Billions
Net Exports,
Billions
Aggregate
Expenditures,
Private Open
Economy, Billions
Exports,
Billions
Imports,
Billions
$150
$190
$30
$20
200
230
30
20
250
270
30
20
300
310
30
20
350
350
30
20
400
390
30
20
450
430
30
20
500
470
30
20
a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.
$
billion
b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill in the 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 a negative sign (-) in
front of those numbers.
What is the equilibrium GDP for the open economy?
billion
What is the change in equilibrium GDP caused by the addition of net exports?
billion
c. Given the original $30 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billion less 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)
Real Domestic
Output (GDP = DI),
Billions
Aggregate
Expenditures,
Private Closed
Economy, Billions
Aggregate
Expenditures,
Open Economy,
Billions
Exports,
Billions
Imports,
Billions
Net Exports,
Billions
$150
$190
$30
$10
200
230
30
10
250
270
30
10
300
310
30
10
350
350
30
10
400
390
30
10
450
430
30
10
500
470
30
10
Net exports = $
billion
Equilibrium GDP = $
billion
d. What is the multiplier in this example?

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