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?

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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