Flexible Exchange Rates and Employment Policy |
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Page 510
... demand for goods and services is equal to the supply of goods and services . This schedule has a positive slope because an increase in output creates an excess supply of goods and services , while an increase in the price of foreign ...
... demand for goods and services is equal to the supply of goods and services . This schedule has a positive slope because an increase in output creates an excess supply of goods and services , while an increase in the price of foreign ...
Page 512
... excess demand for goods and services . To correct this excess demand the level of output would have to be increased or the exchange rate ( the price of foreign currency ) would have to fall : this means that the XX schedule ( Figure 3 ) ...
... excess demand for goods and services . To correct this excess demand the level of output would have to be increased or the exchange rate ( the price of foreign currency ) would have to fall : this means that the XX schedule ( Figure 3 ) ...
Page 514
... excess demand for goods and services , shifting XX to X'X ' , and occasions decreased capital imports , shifting FF to F'F ' , establishing Q ' as the new equilibrium . Shifts in the import schedules as a result of the capital movement ...
... excess demand for goods and services , shifting XX to X'X ' , and occasions decreased capital imports , shifting FF to F'F ' , establishing Q ' as the new equilibrium . Shifts in the import schedules as a result of the capital movement ...
Common terms and phrases
assume balance of payments capital movements central bank changes commercial policy creates an excess depreciation dynamic system effective under flexible effects of fiscal eliminated employment and output equilibrium exceed the slope excess demand excess supply exchange rate-output complex exports F X FIGURE FF schedule fiscal policy fixed exchange rates flexible exchange rates foreign balance schedule foreign exchange foreign trade multiplier foreign-balance schedule improve employment income expansion increase employment increase in income increase in output increased investment interest rate internal balance schedule internal-balance schedule Keynesian Laursen-and-Metzler leakage through foreign level of employment level of output locus of exchange ment monetary policy multiplier effect Policy on Employment positive slope price of foreign quadrants RATE X F reduce capital imports situation in Figure slope of FF slope of XX spending on home STABILITY CONDITIONS terms of trade Theory of Employment XX curve XX exceed XX line XX schedule θα ах