Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 4, Problem 5E
To determine
(a)
The net exports of countries A, B and C
To determine
(b)
The country that is running a
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Table 36-2
Domestic
GDP
Expenditure
Exports
Imports
Total Expenditures
(Y)
C + I + G
(X)
(IM)
C + I + G + (X − IM)
$2,500
$3,100
$650
$250
_____
3,000
3,400
650
300
_____
3,500
3,700
650
350
_____
4,000
4,000
650
400
_____
4,500
4,300
650
450
_____
5,000
4,600
650
500
_____
5,500
4,900
650
550
_____
In Table 36-2, what are net exports when GDP = 3,500?
a.
300
b.
400
c.
100
d.
200
What happens to the level of net exports in an economy when income in that economy increases? What happens to the level of net exports in an economy when income in other economies increases?
Table 36-2
Domestic
GDP
Expenditure
Exports
Imports
Total Expenditures
(Y)
C + I + G
(X)
(IM)
C + I + G + (X − IM)
$2,500
$3,100
$650
$250
_____
3,000
3,400
650
300
_____
3,500
3,700
650
350
_____
4,000
4,000
650
400
_____
4,500
4,300
650
450
_____
5,000
4,600
650
500
_____
5,500
4,900
650
550
_____
From Table 36-2, what can you conclude about net exports as GDP rises?
a.
Net exports fall as GDP rises.
b.
Net exports rise as GDP rises.
c.
Net exports are constant as GDP rises.
d.
Net exports rise and then fall as GDP rises.
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