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Complete the Following Table and Answer the Question on the Basis

Question 68

Multiple Choice

Complete the following table and answer the question on the basis of the resulting data.All figures are in billions of dollars.  Domestic  Output  (GDP = DI)   Aggregate  Expenditures,  Closed Economy  Exports  Imports  Net  Exports  Aggregate  Expenditures,  Open Economy $200$230$30$20$$250270302030031030203503503020400390302045043030205004703020\begin{array}{cccccc}\begin{array}{c}\text { Domestic } \\\text { Output } \\\underline{\text { (GDP = DI) }}\end{array} & \begin{array}{c}\text { Aggregate } \\\text { Expenditures, } \\\underline{\text { Closed Economy }}\end{array} & \begin{array}{c}\\\\\underline{\text { Exports }}\end{array} & \begin{array}{c}\\\\\underline{\text { Imports }}\end{array} & \begin{array}{c}\\\text { Net } \\\underline{\text { Exports }}\end{array} & \begin{array}{c}\text { Aggregate } \\\text { Expenditures, } \\\underline{\text { Open Economy }}\end{array} \\ \$ 200 & \$ 230 & \$ 30 & \$ 20 & \$- & \$- \\250 & 270 & 30 & 20 & -&- \\300 & 310 & 30 & 20 & - & - \\350 & 350 & 30 & 20 & - & - \\400 & 390 & 30 & 20 & - & - \\450 & 430 & 30 & 20 & - & - \\500 & 470 & 30 & 20 & - & -\end{array} Refer to the table.For the open economy,the equilibrium GDP and the multiplier are:


A) $300 and 2.5.
B) $450 and 5.
C) $400 and 4.
D) $400 and 5.

Correct Answer:

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