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The Small Open Economy Model, how the real exchange rate keeps the goods market in equilibrium. As described in intermediate macroeconomics by Mankiw.

This is a powerpoint presentation that demonstrates the SMALL OPEN ECONOMY MODEL as outlined in Mankiw's intermediate macroeconomics text. The slides build the model up one step at a time and explain how the real exchange rate keeps the goods market in equilibrium. (Y = C + I + G + NX(e))

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