Y = F(K, L) = A Ka L1-a C = C(Y T) = 20 + .8(Y I = I(r) = 100 A. What is aggregate output, Y, for this economy?

Y = F(K, L) = A Ka L1-a C = C(Y T) = 20 + .8(Y I = I(r) = 100 A. What is aggregate output, Y, for this economy? C. Given the information you have, what is the value of net exports for this economy? D. Fill in the following table for this economy. E. Suppose government spending increases by 50. Fill in the following table. F. Did the increase in government spending crowd out investment as it did with a closed economy using a Classical Model? Explain your answer. G. What is the relationship between spending and domestic production in this economy? H. What happens to this country”s real exchange rate when government spending increases, holding everything else constant? Explain your answer. A. Fill in the missing values in the table below. B. Using the above information and assuming exports equal 500 complete the following table. C. Using the above data and information, fill in the following table. D. Is the value of Y the same in the second and third tables?

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