Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls help me with the question below, thanks! Question 2: [15 marks] In the open-economy goods market, let DD = C + I + G

pls help me with the question below, thanks!

image text in transcribed
Question 2: [15 marks] In the open-economy goods market, let DD = C + I + G and ZZ=C+I+G+XQ Assume e = I initially and dene net exports as N X = X Q 1. Draw DD and Z Z lines, together with a 45 degree line, to show goodsmarket equilib rium with balanced trade, i.e. with N X = 0. In a separate graph, show net exports (NX) as a function of output (Y). Clearly label the axes in both graphs. 2. Draw DD and Z Z lines, together with a 45 degree line, to show goodsmarket equilil} rium with a trade surplus, i.e. with N X > D. In a separate graph, show net exports (NX) as a function of output (Y). Clearly label the axes in both graphs. 3. Draw DD and Z Z lines, together with a 45 degree line, to show goodsmarket equi librium with a trade decit, i.e. with N X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Great Convergence Information Technology And The New Globalization

Authors: Richard Baldwin

1st Edition

067466048X, 9780674660489

More Books

Students also viewed these Economics questions