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The Closed Economy

The Closed Economy. How the real interest rate keeps the goods market in equilibrium Y = C + I(r) + G. Model Background. Demand. Supply. This model is closed in the sense that there are no exports or imports in the model. The model does include government tax and government expenditure.

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542 views • 9 slides

The Small Open Economy

The Small Open Economy. How the real exchange rate keeps the goods market in equilibrium. Y = C + I + G + NX( ? ). Model Background. Demand. Supply.

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241 views • 9 slides

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The Closed Economy

The Small Open Economy