Suppose exports and imports of a country are given by the following:
GDP Exports Imports
$2,500 $400 $250]
3,000 400 300
3,500 400 350
4,000 400 400
4,500 400 500
1)Calculate net exports at each level of GDP
2)If domestic expenditure(the sum of C+I+G in the economy) is as shown in the following table, calculate the equilibrium level of GDP
GDP Domestic Expenditure
$2,500 $3,100
3,000 3,400
3,500 3,700
4,000 4,000
4,500 4,300
5,000 4,600
3)Now raise exports to $650 and find the equilibrium level of GDP again.
4)How large is the multiplier?