Question
Statistics Canada reported that in the second quarter of 2017 Canadian exports increased by $14 billion. 2.a)Explain and draw a graph to illustrate the effect
Statistics Canada reported that in the second quarter of 2017 Canadian exports increased by $14 billion.
2.a)Explain and draw a graph to illustrate the effect of an increase in exports on equilibrium expenditure in the short run.
b) Explain and draw a graph to illustrate the effect of an increase in exports on equilibrium real GDP in the short run.
c) Explain and draw a graph to illustrate the effect of an increase in exports on equilibrium real GDP in the long run.
d) Compare the multiplier in the short run and the long run and explain why they are not identical
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
