QUESTION 8As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y- 13250: The function that describes consumption is thesame, cd(r) = 5000 – 1000r +0.25Y, but the investment curve shifted to the right: 1d(r) = 550 – 1800r + 0.2Y: This is because firms expect growth to continuein the future and want to invest more. Government spending is also the same: G- 180o0. The world interest rate is 5%. What is Neverland's current account balance?Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were enteredincorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete itand you should not do anything about it.

The current account of an economy keeps track of the country's international transactions with the…

As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y=13250: The function that describes consumption is the same, Cd(r) = 5000 – 1000r +0.25Y, but the investment curve shifted to the right: 1d(,) =550– 1800r+0.2Y: This is because firms expect growth to continue in the future and want to invest more. Government spending is also the same: G- 1800. The world interest rate is 5%. What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.

As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y=13250: The function that describes consumption is the same, Cd(r) = 5000 – 1000r +0.25Y, but the investment curve shifted to the right: 1d(,) =550– 1800r+0.2Y: This is because firms expect growth to continue in the future and want to invest more. Government spending is also the same: G- 1800. The world interest rate is 5%. What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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