Table 11.1

-Refer to Table 11.1. If exports increase by 20 (X = 100), what is the new equilibrium level of output?

Question

Table 11.1
 
-Refer to Table 11.1. If exports increase by 20 (X = 100), what is the new equilibrium level of output?

Quizplus · Accepted Answer

The new equilibrium level of output is determined by the multiplier effect of an increase in exports. An increase in exports leads to a direct increase in aggregate demand, which then gets multiplied throughout the economy. Given the information, if exports increase by 20 (from X = 80 to X = 100), and assuming a multiplier effect, the new equilibrium level of output would adjust accordingly. Without the specific details of the multiplier or the initial equilibrium level from Table 11.1, the correct answer is based on the provided options and the context of the question, which suggests a specific numerical answer.

Table 11.1 -Refer to Table 11.1. If Exports Increase by 20 (X