5. The data in columns 1 and 2 in the table below are for a private closed economy. LO31.6

a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy.

b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4.

Fill in columns 5 and 6 and determine the equilibrium GDP for the open economy. What is the change in equilibrium GDP caused by the addition of net exports?

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?