Question
Suppose your exports were 2000 and Imports are 200 + 0.1Q, where Q is GDP. a) If GDP was 20,000 what are the values for
Suppose your exports were 2000 and Imports are 200 + 0.1Q, where Q is GDP.
a) If GDP was 20,000 what are the values for Imports and Net Exports?
b) Suppose we increased our exports by 500 and that caused GDP to increase by 1000, What are the values for Imports and Net Exports?
Net Exports in an Aggregate Demand-Aggregate Supply model.
c) What happens to the price level and GDP if their is an increase in foreign income?
d) What happens to the price level and GDP if their is a decrease in foreign prices?
e) What happens to the price level and GDP if their is an increase in the exchange rate?
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
