Consider the goods market for a small open economy, where e is the real exchange rate, X are exports, IM are imports and Y* is foreign income.,C- 268 + 0.55YDX= 0.18Y - 107e1=0.15Y - 786 IG= 930T= 1000IM = 0.7Y + 113eY=3749i= 0.01 (1%) e= 1Claculate the level of equilibrium output and the trade balance in this economy:OA. Y=1117.96; NX = -307.35OB. Y= 1094.96; NX= -311.65OC. Y= 1076.09; NX= -303.78OD. Y= 1136.26, NX = -317.95

Equilibrium output (Y) is calculated as follows: Y = C + I + G + X - IM C represents consumption, I…

Consider the goods market for a small open economy, where e is the real exchange rate, X are exports, IM are imports and Y" is foreign income. X 0.18Y - 107e IM = 0.7Y + 113c C- 268 + 0.55YD 1-0.15Y - 786 i G= 930 T= 1000 Y-3749 i= 0.01 (1%) e = 1 Claculate the level of equilibrium output and the trade balance in this economy: OA. Y=1117.96; NX = -307.35 DT:TB OB. Y 1094.96; NX = -311.65 OC. Y= 1076.00; NX -303.78 OD. Y= 1136.26, NX= -317.95

Consider the goods market for a small open economy, where e is the real exchange rate, X are exports, IM are imports and Y" is foreign income. X 0.18Y - 107e IM = 0.7Y + 113c C- 268 + 0.55YD 1-0.15Y - 786 i G= 930 T= 1000 Y-3749 i= 0.01 (1%) e = 1 Claculate the level of equilibrium output and the trade balance in this economy: OA. Y=1117.96; NX = -307.35 DT:TB OB. Y 1094.96; NX = -311.65 OC. Y= 1076.00; NX -303.78 OD. Y= 1136.26, NX= -317.95

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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