PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
7th Edition
ISBN: 9781264088980
Author: Frank
Publisher: MCG
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Question
Chapter 13, Problem 9P
(a)
To determine
Find the short-run equilibrium output of the economy described in problem 7 with zero net export.
(b)
To determine
Find the short-run equilibrium output of the economy when the net export rises to 100.
(c)
To determine
Find the short-run equilibrium output of the economy when the net export reduces to -100.
(d)
To determine
Explain the tendency of recessions and expansions to spread across countries using the findings.
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Students have asked these similar questions
With the advent of NAFTA, Cranford Manufacturing has a U.S. division and a Mexico division.
Each division builds specialty components that are used by both divisions. For each dollar in sales
by the U.S. division, Mexico furnishes $0.20 in components, and for each dollar in sales of the
Mexico division, the United States furnishes $0.05 in components. Each division uses $0.10
worth of its components in its own division.
Find the value of the components each division must produce to support external sales of $200
million by the U.S. division and $180 million by the Mexico division. Give your answer in millions
of dollars. Report only the number, not the units.
I
3. Why the aggregate demand curve slopes downward
The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the price level is 120, and the quantity of output
demanded is $500 billion. Moving up along the aggregate demand curve from point A to point B, the price level rises to 140, and the quantity of
output demanded falls to $300 billion.
170
180
150
B
140
130
A
120
110
AD
100
90
100
200
300
400
500
600
700
800
REAL GDP (Billions of dollars)
PRICE LEVEL
Suppose you are given values for C = 350 + 0.6 (Y - T), Ip = 200, G = 150, G* = 170, M = 0, X = 0, T = 190, T* = 140, t = 0
Where G* and T* are the corresponding foreign counterparts to the domestic variables without an Asterix.
How do I incorporate the G* and T* values when calculating short run equilibrium output? I am aware how to calculate the short run equilibrium output without the G* and T* values. So please do not answer this question if you are not going to include the G* and T* values or are not going to provide an explanation as to how to deal with these values.
Chapter 13 Solutions
PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
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