question archive Using an IS-LM-FE diagram as an ald, describe the effect on a small open economy of a permanent increase in the full-employment level of output
Using an IS-LM-FE diagram as an ald, describe the effect on a small open economy of a permanent increase in the full-employment level of output
Subject:EconomicsPrice: Bought3
Using an IS-LM-FE diagram as an ald, describe the effect on a small open economy of a permanent increase in the full-employment level of output. Assume flexible exchange rates and assume that the domestic interest rate does not deviate from the foreign interest rate. net exports the nominal exchange rate and the In the short run, when the price level is foed, domestic output real exchange rate
