Assume that the country of Legoland suffers a one-time, unexpected, negative shock equivalent to 20% of its output level

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Assume That The Country Of Legoland Suffers A One Time Unexpected Negative Shock Equivalent To 20 Of Its Output Level 1 (26.68 KiB) Viewed 30 times

I believe in a closed economy Q = C
Q isnt given I believe you have to solve for it... im really confused in what us being asked as well
Assume that the country of Legoland suffers a one-time, unexpected, negative shock equivalent to 20% of its output level Q in period 0. Without shock. output stands at $1100. The country's interest rate is 4%. 1. What is Legoland's present value of Q and C in the closed economy case? 2. Assuming zero investment and households able to smooth consumption, what is Legoland's level of consumption C in the open economy case? 3. Determine the value of the following BOP accounts for both period 0 and period 1: TB, NFIA, CA, FA, external wealth (W), and the change external wealth (A W). Enter your answers in the table below. BOP TB NFIA CA FA W AW t=0|t=1