Fill in columns 5 and 6 and determine the equilibrium GDP for the open economy. Explain why

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Fill in columns 5 and 6 and determine the equilibrium GDP for the open economy. Explain why this equilibrium GDP differs from that of the closed economy.

c. Given the original $20 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billion greater at each level of GDP?

d. What is the multiplier in this example?

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Economics

ISBN: 9780073336947

17th Edition

Authors: Campbell McConnell , Stanley Brue

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