The data in columns 1 and 2 in the accompanying table are for a private closed economy: LO4
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. 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 thisexample?

Real Domestic Aggregate Aggregate Expenditures, Private Output Expenditures, Private (3) (GDP DI), Closed Economy, Exports, Imports, Exports, Open Economy Net Billions Billions $200 250 300 350 400 450 500 550 Billions $240 280 320 360 400 440 480 520 Billions Billions Billions $20 20 20 20 20 20 20 20 $30 $ 30 30 30 30 30 30 30