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Open Economy Equilibrium Impact of Export Increase

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In an open economy, the planned expenditure line is shown by the line AE1. The initial equilibrium is shown by point E where the 45 line, intersects AE1. 1.) Using the line drawing tool, show the impact of an increase in exports. Label the line AE2. 2.) Using the point drawing tool, identify the new equilibrium point to show the impact of an increase in exports on income or output. Label this point F. Carefully follow the instructions above, and only draw the required objects.Click the graph, choose a tool in the palette and follow the in....

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In an open economy, the planned expenditure line is shown by the line AE1. The initial equilibrium is shown by point E where the 45 line, intersects AE1. 1.) Using the line drawing tool, show the impact of an increase in exports. Label the line AE2. 2.) Using the point drawing tool, identify the new equilibrium point to show the impact of an increase in exports on income or output. Label this point F. Carefully follow the instructions above, and only draw the required objects.Click the graph, choose a tool in the palette and follow the in...

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  • 1. In an open economy, the planned expenditure line is shown by the line AE1. The initial equilibrium is shown by point E where the 45 line, intersects AE1. 1.) Using the line drawing tool, show the impact of an increase in exports. Label the line AE2. 2.) Using the point drawing tool, identify the new equilibrium point to show the impact of an increase in exports on income or output. Label this point F. Carefully follow the instructions above, and only draw the required objects.Click the graph, choose a tool in the palette and follow the in...