18. Deriving net exportsBy definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypothetical two-country world, imports intoJapan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japan minus exports from theUnited States. Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports.Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealingwith decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price ofa 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once youenter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.)20181614B1026 8EXCHANGE RATE (Dollars per 1,000 yen)o04PRICE OF YEN (Dollars per 1,000 yen)-8 -6 -4161412Suppose that the price of yen is $4 per 1,000 yen. Net exports from Japan will be10Suppose that the price of yen is $6 per 1,000 yen. Net exports from Japan will be8642Exports from U.S.10Exports from Japan10 12 14 16YEN (Trillion)-20Based on the data from the previous two parts of this problem, use the blue line (circle symbol) to plot net exports for Japan as a function of the priceof yen on the following graph. (Note: Select and drag the curve from the palette to the desired position on the graph.)18 202 4 6YEN (Trillion)8Graph Input Tool10Price(Dollars per 1,000yen)12 14Exports from Japan(Trillion yen)16NX from Japan(Trillion yen)$2NX from Japan1816trillion yen.trillion yen.Exports from U.S.(Trillion Yen)2The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a high enough level,such as an amount greater than $10 per 1,000 yen. If you convert this price into the form typically quoted in the newspaper, this price corresponds toyen per dollar.

Net export is the difference between export and import. i.e., Net Export = Export - Import.…

By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypothetical two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japan minus exports from the United States. Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports.

By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypothetical two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japan minus exports from the United States. Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 7PA

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