- Net Exports before and after economic incentives
Net Exports before economic incentives = 20 – 30= -10 million
Net Exports after economic incentives = 35-15 = 20 million
B. Gross domestic product before and after economic incentives (GDP)
GDP before incentives = 50+80+40+(-10)= 160 million
GDP after incentives= 75+130+90+(20)= 315 million
C. Labor force participation rate before and after economic incentives
Labor force participation rate before economic incentives = Labore Force + Adults
= 130+70
= 200 millions
Labor force participation rate after economic incentives = Labore Force + Adults
= 140+80
= 220 million
D. Real interest rate before and after economic incentives
Real interest rate = Nominal interest rate – inflation rate
Real interest rate before economic incentive = 6%-5% = 1%
Real interest rate after economic incentive = 5%-3% = 2%