In a small open economy model determine the effects of a persistent decrease in total factor productivity on domestic output, consumption, investment, and the current account surplus. Draw diagrams for the labour and goods markets, the production function and provide explanation.

In a small open economy model determine the effects of a persistent decrease in total factor productivity on domestic output, consumption, investment, and the current account surplus. Draw diagrams for the labour and goods markets, the production function and provide explanation.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: International Trade And Finance

Section: Chapter Questions

Problem 12SQ

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In a small open economy model determine the effects of a persistent decrease in total factor productivity on domestic output, consumption, investment, and the current account surplus. Draw diagrams for the labour and goods markets, the production function and provide explanation.

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