The data in columns 1 and 2 in the table below are for a private closed economy.(1) Real DomesticOutput (GDP - DI),Billions(2) AggregateExpenditures,Private ClosedEconomy,Billions(5) NetExports,Billions(6) AggregateExpenditures,Private OpenEconomy, Billions(3) Exports,Billions(4) Imports,Billions$300$340$30$203503803020400420302045046030205005003020550540302060058030206506203020a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.billionb. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill inthe 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 anegative sign (-) in front of those numbers.What is the equilibrium GDP for the open economy?billionWhat is the change in equilibrium GDP caused by the addition of net exports?billionc. Given the original $30 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10billion less at each level of GDP? Fill in the gray-shaded cells.

Definition: A private closed economy is a sort of economy that is driven by buyer spending and…

Answered: a. Use columns 1 and 2 to determine the…

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a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. billion

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

The data in columns 1 and 2 in the table below are for a private closed economy.
(1) Real Domestic
Output (GDP - DI),
Billions
(2) Aggregate
Expenditures,
Private Closed
Economy,
Billions
(5) Net
Exports,
Billions
(6) Aggregate
Expenditures,
Private Open
Economy, Billions
(3) Exports,
Billions
(4) Imports,
Billions
$300
$340
$30
$20
350
380
30
20
400
420
30
20
450
460
30
20
500
500
30
20
550
540
30
20
600
580
30
20
650
620
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.

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