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solve 2 these question Question # 03: In the open economy with the trade deficit, the slope of the open economy multiplier must be smaller

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solve 2 these question

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Question # 03: In the open economy with the trade deficit, the slope of the open economy multiplier must be smaller than the closed economy multiplier, briefly comment on the above statement. Also, explain & show graphically the impact of trade deficit on the open economy multiplier. (10) Question # 04 (a): Describe graphically "Interdependence in the global economy" case of saving and investment in the closed economy equilibrium. Show the impact of the decrease in the government spending on the national saving line (S+T-G) and on the interest rate. (06) Question # 04 (b): By using growth accounting approach calculates the contribution of growth in technology, if the output is grown by 3.2%, Labor has grown by 1.4%, and Capital has grown by 1.9%, the value of a is 1/4 and value of 1- a is 3/4: Interpret the final results. (04) Good Luck

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