6. Suppose a hypothetical world in which two countries, Korea and US, exist. Between the two, free trade of goods and assets is allowed and
6. Suppose a hypothetical world in which two countries, Korea and US, exist. Between the two, free trade of goods and assets is allowed and the following are the equilibrium conditions for the goods markets of the two countries. YKOR = C(YKOR - TKOR) + I(YKOR KOR) + GKOR + NX(Yus, YKORIE) MKOR _ YKOR MKOR - 1 PKOR 1 + KOR PKOR C(YKOR - THOR) = C X (YKOR - TKOR), 0
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