In a Small Open Economy

question 76

Essay

In a small open economy
Sᵈ = $20 billion + ($100 billion)r%
Iᵈ = $30 billion - ($100 billion)r%
Y = $70 billion
G = $20 billion
rʷ = .04.
a.Calculate the current account balance.
b.Calculate net exports.
c.Calculate desired consumption.
d.Calculate absorption.

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Definitions:

Environmental Standards

Regulatory benchmarks designed to control pollution and protect the environment, ensuring air, water, and soil quality meets safety thresholds.

Specified

Identified explicitly or in detail.

Raw Materials

Basic materials from which products are made, typically extracted from the earth and used in the initial stages of production.

Different Industries

Various sectors of the economy engaged in diverse forms of productive activities, ranging from agriculture and manufacturing to services and technology.