question archive Compare and contrast the effects of a domestic-led expansion (due to a change in G or T) versus an export-led one (due to a change in Y* or a currency devaluation) in a short-run open economy Keynesian model
Compare and contrast the effects of a domestic-led expansion (due to a change in G or T) versus an export-led one (due to a change in Y* or a currency devaluation) in a short-run open economy Keynesian model
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Compare and contrast the effects of a domestic-led expansion (due to a change in G or T) versus an export-led one (due to a change in Y* or a currency devaluation) in a short-run open economy Keynesian model. Show the impacts on NX and Y (qualitative only). How are the qualitative effects similar or different? Why do the differences matter for policy purposes?
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