7. Marginal propensity to import and net exports The following graph shows net exports for a hypothetical country. U 50 50 40 20 20 NET EXPORTS (Billions of dollars) 10 10 -10 20 -20 300 400 ⑦? 500 600 700 REAL GDP (Billions of dollars) 0 100 200 13 and According to the graph, when the country is producing a real GDP of $400 billion, exports are function is equal to the than imports. The slope of the net exports and thus tells you that for every $1 increase in real GDP, do not change (because they are assumed to be autonomous with respect to real GDP). by
7. Marginal propensity to import and net exports The following graph shows net exports for a hypothetical country. U 50 50 40 20 20 NET EXPORTS (Billions of dollars) 10 10 -10 20 -20 300 400 ⑦? 500 600 700 REAL GDP (Billions of dollars) 0 100 200 13 and According to the graph, when the country is producing a real GDP of $400 billion, exports are function is equal to the than imports. The slope of the net exports and thus tells you that for every $1 increase in real GDP, do not change (because they are assumed to be autonomous with respect to real GDP). by
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
Related questions
Question
![7. Marginal propensity to import and net exports
The following graph shows net exports for a hypothetical country.
U
50
50
40
20
20
NET EXPORTS (Billions of dollars)
10
10
-10
20
-20
300
400
⑦?
500
600
700
REAL GDP (Billions of dollars)
0
100
200
13
and
According to the graph, when the country is producing a real GDP of $400 billion, exports are
function is equal to the
than imports. The slope of the net exports
and thus tells you that for every $1 increase in real GDP,
do not change (because they are assumed to be autonomous with respect to real GDP).
by](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe07127ea-3882-45dd-91e4-3e43fdd8ca1d%2Fff0c86f9-79a7-4467-b1bf-dad16dd612ed%2Fxsmy5au_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. Marginal propensity to import and net exports
The following graph shows net exports for a hypothetical country.
U
50
50
40
20
20
NET EXPORTS (Billions of dollars)
10
10
-10
20
-20
300
400
⑦?
500
600
700
REAL GDP (Billions of dollars)
0
100
200
13
and
According to the graph, when the country is producing a real GDP of $400 billion, exports are
function is equal to the
than imports. The slope of the net exports
and thus tells you that for every $1 increase in real GDP,
do not change (because they are assumed to be autonomous with respect to real GDP).
by
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