3) Show AD curve for closed and open economy and derive trade balance (NX) curve from there. Explain graphically how an expansionary fiscal policy may not help a low income country eliminate trade deficit. What should be done in such a case? Clearly indicate the changes.
3) Show AD curve for closed and open economy and derive trade balance (NX) curve from there. Explain graphically how an expansionary fiscal policy may not help a low income country eliminate trade deficit. What should be done in such a case? Clearly indicate the changes.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Six Debates Over Macroeconomic Policy
Section18.5: Should The Government Balance Its Budget?
Problem 5QQ
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