Graphically illustrate the equilibrium of an open economy. Discuss also the off-the equilibrium situations condition as well as the equilibrium.
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- Graphically illustrate the equilibrium of an open economy. Discuss also the off-the equilibrium situations condition as well as the equilibrium. ECONOMY HELPPPPPModel of an open economy without government. Given is:C = 100 + 0,7YI = 200X = 100Q = 0 + 0.1Ya. Calculate Y0, the trade balance (Export minus Imports) and the multiplierb. How will Y0 and the trade balance change when investments increase by 100?c. How will Y0 and the trade balance change when exports increase by 100?d. How will Y0 and the trade balance change when autonomous imports increasefrom 0 to 100?e. Compare Y0, the trade balance, and the multiplier found in a) with the valuesyou obtain for a more open economy with exports of 500 and a marginalpropensity to import of 0.5.With the following excerpts, how far does the extract suggest the BRICS are open economies?
- 11. As per the Stolper-Samuelson analysis, in an open economy, the factor used extensively in the economic sector with an increasing price:(a) benefits as a producer, but loses more as a consumer.(b) benefits, regardless of the usual consumption preferences.(c) certainly benefits as a consumer.(d) loses both as a producer and as a consumer.econ 202 Analyze the impacts of openness to trade in general. Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy? Support your claims with specific details from your course reading.As per the Stolper-Samuelson analysis, in an open economy, the factor used extensively in the economic sector with an increasing price: benefits as a producer, but loses more as a consumer. benefits, regardless of the usual consumption certainly benefits as a loses both as a producer and as a consumer.
- Discuss two (2) advantages and two (2) disadvantages of globalisation."Consider a small open economy that produces and consumes two goods: textiles and technology. The country has experienced a technological breakthrough in textile manufacturing, increasing its productivity. At the same time, the global demand for technology, the country's other export, has decreased. Analyze the following: a) How would the technological breakthrough in textile manufacturing affect the country's production possibility frontier? b) What could be the short-term and long-term effects on the country’s terms of trade? c) Discuss how the decrease in global demand for technology could influence the country's export revenues and economic growth. d) Propose one policy measure the government could take to mitigate any negative impacts on the economy due to these changes."explain five advantages of an open economy
- What are the roles of WTO? Elaborate each role.As per the Stolper-Samuelson analysis, in an open economy, the factor used extensively in the economic sector with an increasing price: (a) benefits as a producer, but loses more as a consumer.(b) benefits, regardless of the usual consumption preferences. (c) certainly benefits as a consumer.(d) loses both as a producer and as a consumer.Suppose that in a year an American worker canproduce 100 shirts or 20 computers and a Chineseworker can produce 100 shirts or 10 computers.a. For each country, graph the productionpossibilities frontier. Suppose that without tradethe workers in each country spend half their timeproducing each good. Identify this point in yourgraphs.b. If these countries were open to trade, whichcountry would export shirts? Give a specificnumerical example and show it on your graphs.Which country would benefit from trade?Explain.c. Explain at what price of computers (in terms ofshirts) the two countries might trade.d. Suppose that China catches up with Americanproductivity so that a Chinese worker canproduce 100 shirts or 20 computers in a year. Whatpattern of trade would you predict now? Howdoes this advance in Chinese productivity affectthe economic well-being of the two countries’citizens?