Illustrate the trade balance at the equilibrium level

Assignment Help Microeconomics

Reference no: EM131777744

Question: C = 10 + 0.9 (Y-T), I = 80, G = 65, and T = 50

Imports and exports are given by:

IM = 0.3Y and X = 0.2Y*

Foreign income (Y*) = 1000

(a) Draw representative graphs of the goods market and net-exports. Draw your graphs to illustrate the trade balance at the equilibrium level of output.

(b) What happens to equilibrium output and the trade balance if foreign income increases to 1200? Show the impact of this change on the graphs that you drew in part c.

Reference no: EM131777744

Questions Cloud

Design of watermain : In the design of watermain, the normal practice is to use ductile iron for pipe size less than 600mm and to use steel for pipe size more than 600mm. Why

Solve for equilibrium output in the domestic economy : Draw representative graphs of the goods market and net-exports. Draw your graphs to illustrate the trade balance at the equilibrium level of output.

Potential problems associated with such a myopic view : Some managers focus on the 'bottom line,' meaning net income. This week, please discuss some of the potential problems associated with such a myopic view.

Prepare an audiovisual sales presentation : Prepare an audiovisual sales presentation that is supported by creative sales promotions as you assume the role of the new marketing associate.

Illustrate the trade balance at the equilibrium level : Draw representative graphs of the goods market and net-exports. Draw your graphs to illustrate the trade balance at the equilibrium level of output.

Identify an attribute selector that recognizes groups : Identify an attribute selector that recognizes groups of elements that share a similar characteristic or property - units express font size according

Calculate the future value of the next best alternative : You are considering installing all new compact fluorescent light bulbs in your house. Your initial investment in the light bulbs will cost a total of $400.

What elements should a designer or manager include : What types of items should you incorporate into an organization's brochure?What elements should a designer or manager include when developing a brochure?

List five interventions to address the global social problem : Discuss the Human Trafficking: Policy Perspective and Interventions. List at least 5 interventions to address the global social problem.

User Account

All Pages