Question: 6. Aggregate expenditure and income Suppose the following table shows consumption (CC), investment (II), government purchases (GG), and net exports (NXNX) in a hypothetical economy for various lnxnxevels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.
Use these formulae, or variations thereof. and the given data to address the questions:FORMULAE: sd=1d+NxNx=Y-(Cd+1d+G)DATA: autonomoue consumption =2000,MPC=0.4,Tx=3500Id=1500,G=2000,Nx=-500QUESTIONS:a. Solve for Cd,Y, and Sd.b. Prove that the 2 given formulae are equivalent equilibrium conditions.c.
Question: Exhibit: Policies Influence Real Exchange Rate Real exchange rate, e €₁ RA exchange rate, € €₂ €₁ (A) O (A) O (B) O (C) O (D) S₁-1 S₂-1 MXNX, (C) S-1₂ S-1₁ NXNX NX Net exports NX Net exports (B) S-1(r) S-1(r) X MX, NX, Real exchange rate, e Real exchange rate, € S-1 NX (D) NX Net exports NX₂ NX₁ Net exports Which of the panels illustrates the impact of an
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