Data for the country of Upper Mongoose are given in the table below. All figures are in billions of dollars.CategoryValueNet exportsValue of new goods and services produced in the underground economy5080Personal consumption expenditures450Value of the services of stay-at-home parents30Gross domestic investment100Government purchasesTotal100810Instructions: In part a, enter your answer as a whole number. In parts b-c, round your answers to 2 decimal places.a. What is Upper Mongoose's GDP for the year?|billion.b. What is the size of the underground economy as a percentage of GDP?|percent.c. By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP?percent.

Data for the country of upper mongoose are given in the table . All figures are in billions of…

Category Value Net exports Value of new goods and services produced in the underground economy Personal consumption expenditures Value of the services of stay-at-home parents Gross domestic investment Government purchases Total 50 80 450 30 100 100 810 Instructions: In part a, enter your answer as a whole number. In parts b-c, round your answers to 2 decimal places a. What is Upper Mongoose's GDP for the year? ] billion. b. What is the size of the underground economy as a percentage of GDP? Ipercent %24

Category Value Net exports Value of new goods and services produced in the underground economy Personal consumption expenditures Value of the services of stay-at-home parents Gross domestic investment Government purchases Total 50 80 450 30 100 100 810 Instructions: In part a, enter your answer as a whole number. In parts b-c, round your answers to 2 decimal places a. What is Upper Mongoose's GDP for the year? ] billion. b. What is the size of the underground economy as a percentage of GDP? Ipercent %24

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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An open economy is described by the following system of macroeconomic equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$:Y = C + I + G + X –MC = 160 + 0.6 YdT = 100 + 0.25YX = 80I = 150G = 150M = 22 + 0.25YWhere: Yis domestic incomeYdis private disposable income C is aggregate consumption spending T is government tax revenue I is investment spending X represents exports M represents imports of goods and services. (a) Determine trade balance at equilibrium. (b) Find the multiplier applicable to autonomous tax and interpret it. (c)Use the multiplier applicable to exports, to explain how a 100 billion decline in demand for exports could have affected the economy’s: (i)GDP/ output (ii)Balance of trade (iii)Government budget
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The United States exports14%ofGDP while Germany exports about 50% of it sGDP.Explain wha ttha tmeans.
Given the following variables in the open economy aggregate expenditure model, autonomous consumption (C0) = 200, autonomous investment (I0) = 200, government spending (G0) = 100, export spending (X0) = 100, autonomous import spending (M0) = 100, taxes (TP) = 0, marginal propensity to consume (c1) = 0.8, marginal propensity to invest (i1) = 0.1, and marginal propensity to import (m1) = 0.15, a. Calculate the equilibrium level of income for the open economy aggregate expenditure model. b. Determine the value of the open economy expenditure multiplier. c. If there is an increase in autonomous import expenditure from 100 to 200 resulting from an increase in the currency exchange rate, calculate the new equilibrium level of income and the value of the multiplier. d. Compared with the original equilibrium in part a, if the government decides to impose taxes (TP) of 100, calculate the new equilibrium level of income. e. Find the value of the multiplier and the corresponding equilibrium…
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Suppose there is a reduction in foreign output, Y*. This reduction in Y* will cause which of the following in the domestic country?a reduction in outputa reduction in consumptiona reduction in net exportsall of the abovenone of the above
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