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QUESTION 8 GDP Aggregate Expenditures (Closed Economy) Exports Imports $400 450 500 550 600 650 700 $60 60 60 60 60 60 60 $440 480 520 $50 600 640 680 50 All figures in the table are in billions of dollars. If this economy were an open economy, the equilibrium GDP would be O $550 billion. O $650 billion. $500 bilion. $600 billion.

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Answer #1

Answer : Equilibrium level of GDP is

GDP = Aggregate expenditure + ( Export- Import)

GDP= $560+(50-60)= $560-$10= $550

Therefore, Equilibrium level of GDP is equal to aggregate expenditure and Difference between export and Import.

Option A is correct.

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