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.
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- Model 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.Measuring the openness of an economy The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy. Use the information provided to compute the openness measure for each country. Exports Imports GDP Openness Measure Country (Billions of dollars) (Billions of dollars) (Billions of dollars) Brownitopia 24 21 125 ________ Steelvania 106 97 145 _________ Based on your calculations, you can conclude that Steelvania is relatively _____ (less or more) open than Brownitopia.With the following excerpts, how far does the extract suggest the BRICS are open economies?
- What is an open economy, and what are its importance and advantages when implemented? 600 wordsecon 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.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.
- D7 list and explain the 4 participants that influence the flows of production, income and expenditure in a closed economyQuestion 37 In the flow diagram representing an open economy, which of the following is TRUE? GNE plus imports are equal to GDP. GNE plus the trade balance (TB) are equal to GDP (total domestic production). GDP rises as GNI rises. GNE are always less than GDP.What are the assumptions in the small open economy.vs closed or largeopen? What would be an example country today?
- If domestic Investment increases, and there is no change in the amount of private and public saving, what must happen to the size of the trade deficit?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."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."
