文档介绍：Chapter 7:The Goods Market in an Open Economy
7-1: The IS Relation in the open Economy
7-2: Equilibrium Output and the Trade Balance
7-3: Increases in Demand, Domestic or Foreign
7-4: Depreciation, the Trade Balance,and output
7-5: Looking at Dynamics:The J-Curve
7-6: Saving, Investment, and Trade Deficits
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7-1: The IS Relation in the open Economy
The Demand for Domestic Goods
The Determinants of the Demand for Domestic Goods
The Determinants of C, I, and G
The Determinants of Imports
The Determinants of Exports
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The Demand for Domestic Goods
In an open economy, the demand for domestic goods is given by
Z ≡ C+I+G-εQ+X ()
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The Determinants of C, I, and G
Domestic demand:
C+I+G=c(Y-T)+I(Y,r)+G
( + ) (+, -)
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The Determinants of Imports
Q=Q(Y,ε) ()
(+,-)
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The Determinants of Exports
X=X(Y*,ε) ()
(+ ,+)
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Figure: The Demand for Domestic Goods Exports
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Figure: The Demand for Domestic Goods Exports
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7-2: Equilibrium Output and the Trade Balance
The goods market is in equilibrium when domestic output equals the demand for domestic goods:
Y=Z
Collecting the relations we derived for ponents of the demand for domestic goods,Z,
Y=c(Y-T)+I(Y,r)+G-εQ(Y,ε)+X(Y*,ε) ()
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Figure:Equilibrium Output exports
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