Question
The foreign and domestic economies are initially at potential GDP. The domestic economy is small and the foreign economy is large. The exchange rate is
The foreign and domestic economies are initially at potential GDP. The domestic economy is small and the foreign economy is large. The exchange rate is floating and capital is perfectly mobile. Assume a Classical model so that adjustment to any shock happens instantly. Using the AD-AS model analyzes the impact on domestic X-M, I, C, Y, P, and E for the following shock:
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Plenitude The New Economics Of True Wealth
Authors: Juliet Schor
1st Edition
1594202540, 9781594202544
