An economy with zero net exports is described below: \[ \begin{aligned} C & =4 e+8.8(Y-T) \\ I P & =7 e \\ G & =12 e \\ N & =8 \\ T & =15 e \\ Y * & =580 \end{aligned} \] The multiplier in this economy is 5 . a. Find short-run equilibrium output. Instructions: Enter your responses as whole numbers. Short-run equilibrium output: b. Economic recovery abroad increases the demand for the country's exports; as a fesult, $N X$ rises to 100. What happens to short-run equilibrium output? Short-run equilibrium output [herenas is to C. Repeat part b, but this time assume that foreign economies are slowing, reducing the demand for the country's exports, so that $N X$ $=-100$. (A negative value of net exports means that exports are less than imports) Short-run equilibrium output decreases i) to d. Which of the following best describes the tendency of recessions and expansions to spread across countries?

Public Answer

OVWUUA The First Answerer