The Data in the First Two Columns Below Are for a Closed

question 42

Essay

The data in the first two columns below are for a closed economy without government.Use this table to answer the following questions. (a) What is the equilibrium GDP for the closed economy?
(b) What is the size of the multiplier in the closed economy?
(c) Including the international trade figures for exports and imports, calculate net exports and determine the equilibrium GDP for an open economy.(d) What will happen to equilibrium GDP if exports were $25 billion larger at each level of GDP?
(e) What is the size of the multiplier in the open economy?

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Definitions:

Family

A social unit consisting of parents and their children, considered as a group, whether dwelling together or not; also can include a broader network of relatives.

Set Point

A theory suggesting that the body regulates its weight and energy balance through internal controls, aiming to maintain a certain level or "set point."

Evolutionary

Pertaining to evolution, the process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Yerkes-Dodson

A law suggesting that performance increases with physiological or mental arousal to a certain point, but beyond that, performance decreases.