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What is Impact of Export Changes on Economy about?

The document discusses how an increase in exports affects an open economy. It shows that an increase in exports of 37.50 leads to an increase in total output of 93.75. This is spent on increased consumption, savings, and imports. The increase in savings reduces the amount the country needs to borrow from 37.50 to 14.06. If exports increase further by 200, output increases by 500 and net exports becomes positive at 110.94, eliminating the need to borrow from other countries. The analysis uses aggregate expen

Author

周杨

Language

EN