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Consider; Explain and illustrate how the central bank from country A would react, everything else held constant. For simplicity, assume no time lag for policy

Consider;

Explain and illustrate how the central bank from country A would react, everything else held constant. For simplicity, assume no time lag for policy to affect the economy, the economy is starting at potential output, and country B is a major trading partner.

Country B makes it harder for country A's investments to buy B's stock.

To illustrate that change, plot NCO and NX on one graph, and AE on the second graph. For your analysis, choose as a starting point (marked A), an economy operating at potential GDP (Y1=Y*). Mark initial curves as NCO1, NX1, and AE1, and every subsequent shift with a higher number, like NCO2, NX2, and AE2 and so on, and any subsequent point as B, C, D and so on (points need to be on both graphs).

There is a decrease in demand for country A's goods by the consumers of country B.

To illustrate that change, plot NCO and NX on one graph, and AE on the second graph. For your analysis, choose as a starting point (marked A), an economy operating at potential GDP (Y1=Y*). Mark initial curves as NCO1, NX1, and AE1, and every subsequent shift with a higher number, like NCO2, NX2, and AE2 and so on, and any subsequent point as B, C, D and so on (points need to be on both graphs). ________

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(a) Complete the Table above (show the last column only) and determine the equilibrium real output of the private, open economy. Clearly show your steps and calculations. (b) If full-employment GDP for the open economy is $350 billion, will there be an inflationary expenditure gap or a recessionary expenditure gap in the economy? Why? Explain the consequence of this expenditure gap on the economy's real output and employment, if any. (c) Discuss the application of Keynesian macroeconomic theory to a major modern macroeconomic disturbance, such as the United States' Great Recession of 2007-2009. Your discussion should include the macroeconomic problems encountered and the Keynesian policies applied to address the problems.Question 1 2 pts The accounting department of a large corporation would be classified as a O Investment center Cost center O Profit center O Segment Question 2 2 pts In a responsibility accounting environment, upper managers evaluate the performance of the unit managers based O On those items over which the unit managers have control O On the overall profit of the organization O None of the aboveQuestion 30 (1 point) Saved + In a closed economy, a reduction in domestic demand has: a larger effect on output than in a open economy and a no effect on the trade balance. Oa smaller effect on output than in a open economy and a positive effect on the trade balance. a larger effect on output than in an open economy and a negative effect on the trade balance. a larger effect on output than in an open economy and a positive effect on the trade balance. a smaller effect on output than in an open economy and a negative effect on the trade balance,Use the following to answer question 15: Exhibit: Saving and Investment in a Small Open Economy Real interest 15. (Exhibit: Saving and Investment in a Small Open Economy) In a small open economy, if the world interest rate is na, then the economy has: A) a trade surplus. B) balanced trade. C) a trade deficit. D) negative capital outflows. 16. Starting from a small open economy with balanced trade, if large foreign countries increase their domestic government purchases, this policy will tend to increase: A) investment in the small open economy. B) saving in the small open economy. C) exports by the small open economy. D) imports by the small open economy. 17. Holding other factors constant, legislation to cut taxes in an open economy will; A) increase national saving and lead to a trade surplus. B) increase national saving and lead to a trade deficit. C) reduce national saving and lead to a trade surplus. D) reduce national saving and lead to a trade deficit. 18. For an open economy with perfect capital mobility, when net capital outflow is measured along the horizontal axis and the real interest rate is measured along the vertical axis, net capital outflow is drawn as a: A) vertical line at 0. B) horizontal line at the world real interest rate. C) line that slopes up and to the right. D) line that slopes down and to the right

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