# this is a table with some questions and i don't know how to solve it

-------------table--------------------
(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 1st question is use columns 1 and 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?

## 1. To determine the equilibrium GDP for this hypothetical closed economy, you need to find the point where aggregate expenditures (column 2) are equal to real domestic output (column 1). Looking at the table, we can see that at a GDP of \$400 billion, aggregate expenditures are also \$400 billion. Therefore, the equilibrium GDP for this closed economy is \$400 billion.

2. To determine the equilibrium GDP for the open economy, we need to consider net exports. Net exports can be calculated by subtracting imports (column 4) from exports (column 3). Looking at the table, exports and imports are constant at \$20 billion and \$30 billion, respectively. Since net exports are calculated as exports minus imports, it would be \$20 billion minus \$30 billion, which gives us a net export value of -\$10 billion. Therefore, in an open economy with these given values, there is no equilibrium GDP.

3. If imports were \$10 billion greater at each level of GDP, it means that you would need to add \$10 billion to the value of imports in column 4. The new value for imports at each level of GDP would be \$40 billion. However, given that exports remain constant at \$20 billion, net exports would change. Net exports would be calculated as exports minus imports, which in this case would be \$20 billion minus \$40 billion, resulting in net exports of -\$20 billion. To find the new equilibrium GDP, you would need to identify the point where aggregate expenditures (column 6) are equal to real domestic output (column 1) under these new net export conditions.

4. The multiplier in this example can be calculated by dividing the change in equilibrium GDP by the change in autonomous spending (aggregate expenditures in this case). Since we know the equilibrium GDP in a closed economy is \$400 billion, and the change in autonomous spending (aggregate expenditures) between columns 1 and 2 is \$40 billion (\$240 billion to \$280 billion), we can calculate the multiplier as 400/40 = 10. Therefore, the multiplier in this example is 10. (Note: The multiplier is a concept used in macroeconomics to measure the change in equilibrium GDP resulting from a change in autonomous spending.)

## To solve this problem step-by-step, let's go through each question:

1. To determine the equilibrium GDP for this hypothetical closed economy, we need to find the point where aggregate expenditures (column 2) equals real domestic output (column 1).

Looking at the given data, we can see that at \$400 billion in real domestic output (GDP), aggregate expenditures reach \$400 billion as well. Therefore, the equilibrium GDP for this closed economy is \$400 billion.

2. To determine the equilibrium GDP for the open economy, we need to fill in columns 5 and 6 (net exports and aggregate expenditures open).

Net exports (column 5) can be calculated by subtracting imports (column 4) from exports (column 3). In this case, since both exports and imports are given as \$20 billion, net exports would be:

Net exports = exports - imports = \$20 billion - \$30 billion = -\$10 billion (deficit)

Now, to calculate aggregate expenditures open (column 6), we need to add net exports to the corresponding values in aggregate expenditures private (column 2). For example, at \$240 billion in aggregate expenditures private, the aggregate expenditures open would be:

Aggregate expenditures open = Aggregate expenditures private + Net exports
= \$240 billion + (-\$10 billion)
= \$230 billion

By following the same process for each value in column 2, we can fill in column 6.

3. To determine the equilibrium GDP if imports were \$10 billion greater at each level of GDP, we need to adjust the net exports accordingly.

Since exports remain constant at \$20 billion, an increase in imports by \$10 billion would result in a decrease in net exports by \$10 billion at each level of GDP.

Therefore, the new net exports (column 5) would be:

New net exports = exports - (imports + \$10 billion)
= \$20 billion - (\$30 billion + \$10 billion)
= -\$20 billion (deficit)

To calculate the equilibrium GDP, we can repeat the process for the open economy, using the adjusted net exports values to calculate aggregate expenditures open (column 6).

4. The multiplier in this example can be calculated using the formula:

Multiplier = 1 / (1 - marginal propensity to consume)

To find the marginal propensity to consume, we can use the change in aggregate expenditures (column 2) divided by the change in real domestic output (column 1) for any two consecutive values.

Let's calculate the multiplier using the first two values:

Multiplier = 1 / (1 - (change in aggregate expenditures / change in real domestic output))
= 1 / (1 - (\$280 billion - \$240 billion) / (\$250 billion - \$200 billion))
= 1 / (1 - \$40 billion / \$50 billion)
= 1 / (1 - 0.8)
= 1 / 0.2
= 5

Therefore, the multiplier in this example is 5.

## To solve the table and answer the questions, you need to use the information provided in each column. Let's go through each question step by step:

1. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy:
To find the equilibrium GDP, you need to compare the values in columns 1 and 2. Look for the level of GDP where aggregate expenditures (column 2) are equal to real domestic output (column 1). In this case, the equilibrium GDP can be found at \$400 billion when aggregate expenditures are also \$400 billion.

2. Fill in columns 5 and 6 to determine the equilibrium GDP for the open economy:
To determine the equilibrium GDP for the open economy, you need to consider exports (column 3) and imports (column 4) in addition to the aggregate expenditures. Net exports (column 5) can be computed by subtracting imports from exports. In this case, since the table doesn't provide values for net exports, we can leave column 5 blank. The equilibrium GDP for the open economy can be found where aggregate expenditures minus net exports (column 6) are equal to real domestic output (column 1).

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 find the equilibrium GDP with higher imports, you need to increase the values in column 4 (imports). Add \$10 billion to each value in column 4 and then repeat the process from question 2 to find the new equilibrium GDP for the open economy.

4. What is the multiplier in this example?
To find the multiplier, you need to calculate the change in equilibrium GDP for a given change in aggregate expenditures. In this case, you can calculate the multiplier by dividing the change in equilibrium GDP by the change in aggregate expenditure. Choose any two levels of GDP and aggregate expenditures from the table and compute the change in GDP for a given change in aggregate expenditure. The ratio of the change in GDP to the change in aggregate expenditure will give you the multiplier.

Remember to use the data and equations provided in the table to answer each question effectively.