7. Marginal propensity to import and net exportsThe following graph shows net exports for a hypothetical country.U5050402020NET EXPORTS (Billions of dollars)1010-1020-20300400⑦?500600700REAL GDP (Billions of dollars)010020013andAccording to the graph, when the country is producing a real GDP of $400 billion, exports arefunction is equal to thethan imports. The slope of the net exportsand 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

Q7) net exports is difference between the Exports and import, Exports are assumed to be fixed/…

Answered: 7. Marginal propensity to import and…

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

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