Consider the following table.(1) (2) (3) (4) (5) (6)Initial GDPDomesticDemand Exports Imports Net ExportsTotalSpending4100 4000 250 4103800 3800 250 3803500 3600 250 3503200 3400 250 3202900 3200 250 290a. Complete columns (5) and (6) in the table and estimate the equilibrium GDP in theeconomy.b. Calculate MPC.c. Calculate MPM.d. Calculate the open-economy expenditure multiplier.e. Assume exports increased from 250 to 350. Calculate the change in GDP and the newequilibrium level of GDP.ECON 201: Introduction toMacroeconomicsSemester: Spring 2024

Suppose the nation's Expenditure on Consumption (C) amounts to $35000, Expenditure on Investment (I) stands at $15000, Government Expenditure (G) equals $2800, Export Revenues (X) total $3000, and Import Costs (M) tally to $2500. Calculate the nation's GDP.A.$52000B.$52300C.$53300D.$52800

The correct formula for calculating the gross domestic product (GDP) by the expendituremethod for an open economy isA. consumption + investment + government spending.B. consumption + investment + government spending + exports – imports.C. consumption + investment + government spending + net income from abroad.D. consumption + government revenue + exports – imports – government spending.

Real GDP (Y) Consumption expenditure (C) Investment (I) Government expenditure (G) Exports (X) Imports (M) 1.0 2.0 3.0 4.0 5.0 6.0 1.00 1.65 2.30 2.95 3.60 4.25 0.5 0.5 0.5 0.5 0.5 0.5 0.7 0.7 0.7 0.7 0.7 0.7 0.45 0.45 0.45 0.45 0.45 0.45 1.15 0.30 0.45 0.60 0.75 0.90 Using the table above, NOTE When Y = 1.0, M should be 0.15 NOT 1.15. Assume t =0. Answer the following questions: a. Autonomous Expenditure = A0 = C + I + G + X – M b. MPC = MPS = ________________________ c. MPM = _______________________ MP to Spend = z = ___________________________ d. AE Function = ___________________ The Expenditure Multiplier = __________________ e. Equilibrium expenditure is = _______________________

The following information describes an open economyC =60 +0.8Yd ; Yd = Y-T+ TR ; I= 100-5i ; i= 6; G =76; T =; 15; TR =60; X= 70; M= 12+0.2Y; i. Derive the IS equationli. Calculate equilibrium level of incomeiii. Calculate #foreign_trade_multiplieriv. At equilibrium whether the country enjoy a trade surplus or deficit? What is the size of trade surplus/deficit?v. If the government's expansionary monetary policy reduces the interest rate to 4 percent; what would be the impact of this policy change on the economy?

Calculate GDP with expenditure approach.