2.3 The Open-Economy Income-Expenditure Model
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28.2 The Aggregate Expenditures Model – Principles of Economics
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1.3 The Income-Expenditure Model
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Explain the idea of equilibrium in the income-expenditure model. As part of your answer, explain what happens when aggregate expenditure either exceeds or falls short of output in the current period and
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According to the Classical small open economy model, what happens to domestic national saving, investment, the trade balance, and the real exchange rate in response to each of the following events? Draw
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