The data in columns 1 and 2 in the table below are for a private closed economy. (2) Aggregate Expenditures, (1) Real Domestic Output (GDP = DI), Billions (5) Net Еxports, Billions (6) Aggregate Expenditures, Private Open Economy, Billions (3) Exports, Billions (4) Imports, Billions Private Closed Economy. Billions $300 $340 $20 $30 350 380 20 30 400 420 20 30 450 460 20 30 500 500 20 30 550 540 20 30 600 580 20 30 650 620 20 30 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. 500 billon $ 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 $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. (2) Aggregate (1) Real DomesticExpenditures, Output (GDP = DI), Private Closed Economy, Billions $340 (6) Aggregate Expenditures, Open Economy, Billions (3) Exports, Billions (4) Imports, Billions (5) Net Exports, Billions Billions $300 $20 $40 350 380 20 40 400 420 20 40 450 460 20 40 500 500 20 40 550 540 20 40 600 580 20 40 650 620 20 40 Net exports $ billion Equilibrium GDP = $ billion d What le the thie oua mele?
The data in columns 1 and 2 in the table below are for a private closed economy. (2) Aggregate Expenditures, (1) Real Domestic Output (GDP = DI), Billions (5) Net Еxports, Billions (6) Aggregate Expenditures, Private Open Economy, Billions (3) Exports, Billions (4) Imports, Billions Private Closed Economy. Billions $300 $340 $20 $30 350 380 20 30 400 420 20 30 450 460 20 30 500 500 20 30 550 540 20 30 600 580 20 30 650 620 20 30 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. 500 billon $ 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 $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. (2) Aggregate (1) Real DomesticExpenditures, Output (GDP = DI), Private Closed Economy, Billions $340 (6) Aggregate Expenditures, Open Economy, Billions (3) Exports, Billions (4) Imports, Billions (5) Net Exports, Billions Billions $300 $20 $40 350 380 20 40 400 420 20 40 450 460 20 40 500 500 20 40 550 540 20 40 600 580 20 40 650 620 20 40 Net exports $ billion Equilibrium GDP = $ billion d What le the thie oua mele?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1
Transcribed Image Text:The data in columns 1 and 2 in the table below are for a private closed economy.
(2) Aggregate
Expenditures,
(6) Aggregate
Expenditures,
Private Open
Economy, Billions
(1) Real Domestic
Output (GDP = DI),
(5) Net
Exports,
Billions
(4) Imports,
(3) Exports,
Billions
Private Closed
Billions
Billions
Economy,
Billions
$300
$340
$420
$30
350
380
20
30
400
420
20
30
450
460
20
30
500
500
20
30
550
540
20
30
600
580
20
30
650
620
20
30
a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.
500 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 $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.
(2) Aggregate
Expenditures,
Output (GDP = DI), Private Closed
Economy,
Billions
(5) Net
Exports,
Billions
(6) Aggregate
Expenditures,
Open Economy.
(1) Real Domestic
(3) Exports,
Billions
(4) Imports,
Billions
Billions
Billions
$300
$340
$20
$40
350
380
20
40
400
420
20
40
450
460
20
40
500
500
20
40
550
540
20
40
600
580
20
40
650
620
20
40
Net exports = $
billion
Equilibrium GDP = $
billion
d. What is the multiplier in this example?
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