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Complete the Following Table and Answer the Question on the Basis

Question 71

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} If the economy was closed to international trade,the equilibrium GDP and the multiplier would be:


A) $300 and 5.
B) $350 and 4.
C) $400 and 4.
D) $350 and 5.

Correct Answer:

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