please please please please help me this is due tomorrow!!!
this is a table with some questions and i don't know how to solve it
(1)real domestic output (GDP=DI) in billions
$200
$250
$300
$350
$400
$450
$500
$550
(2)aggregate expenditures private closed economy billions
$240
$280
$320
$360
$400
$440
$480
$520
(3)exports billions
$20
$20
$20
$20
$20
$20
$20
$20
(4)imports billions
$30
$30
$30
$30
$30
$30
$30
$30
(5)net exports private economy
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(6)aggregate expenditures open,billions
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the 1 question is use columns 1and 2 to determine the equilibrium GDP for this hypothetical economy.
2.fill in columns 5 and 6 to determine the equilibrium GDP for the open economy.
3. Given the original $20 billion level of exports, what would be the equilibrium GDP if imports were $10 billion greter at each level of GDP?
4. What is the multiplier in this example?
To solve the questions, we need to understand the concepts of equilibrium GDP, net exports, and the multiplier. Let's go step by step:
1. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy:
To find the equilibrium GDP, we need to identify the point where aggregate expenditures (column 2) are equal to the real domestic output (column 1). Looking at the table, we can determine that the equilibrium GDP is $400 billion. At this level, the aggregate expenditures match the real domestic output.
2. Fill in columns 5 and 6 to determine the equilibrium GDP for the open economy:
For an open economy, we need to consider net exports. Net exports can be calculated by subtracting imports (column 4) from exports (column 3). However, the table does not provide any specific values for net exports (column 5) or aggregate expenditures for an open economy (column 6). Therefore, we cannot determine the equilibrium GDP for the open economy based on the given table alone.
3. Given the original $20 billion level of exports, what would be the equilibrium GDP if imports were $10 billion greater at each level of GDP:
To answer this question, we need to determine the impact of increased imports on the equilibrium GDP. By increasing imports by $10 billion at each level of GDP, we would subtract $10 billion from net exports. Assuming imports increase by $10 billion at all GDP levels, the equilibrium GDP would be $390 billion ($400 billion - $10 billion).
4. What is the multiplier in this example:
The multiplier measures the effect of changes in spending on the overall economy. To determine the multiplier, we can calculate the change in GDP divided by the change in aggregate expenditures. Based on the given table, we can observe that a $50 billion increase in aggregate expenditures (from $200 billion to $250 billion) leads to a $50 billion increase in GDP. This indicates that the multiplier in this example is 1, meaning a $1 change in aggregate expenditures results in a $1 change in GDP.
Remember, it's important to understand the underlying concepts and calculations to solve such questions.