PPT -Open Economy Macroeconomics Commerce Notes | EduRev

Economics Class 12

Commerce : PPT -Open Economy Macroeconomics Commerce Notes | EduRev

 Page 1


11 
THE MACROECONOMICS OF OPEN ECONOMIES
Page 2


11 
THE MACROECONOMICS OF OPEN ECONOMIES
Copyright © 2004  South-Western
31
31
Open-Economy 
Macroeconomics: 
Basic Concepts
Page 3


11 
THE MACROECONOMICS OF OPEN ECONOMIES
Copyright © 2004  South-Western
31
31
Open-Economy 
Macroeconomics: 
Basic Concepts
Copyright © 2004  South-Western
Open-Economy Macroeconomics: 
Basic Concepts 
•
Open and Closed Economies
•
A closed economy is one that does not interact with 
other economies in the world.
•
There are no exports, no imports, and no capital flows.
•
An open economy is one that interacts freely with 
other economies around the world.  
Page 4


11 
THE MACROECONOMICS OF OPEN ECONOMIES
Copyright © 2004  South-Western
31
31
Open-Economy 
Macroeconomics: 
Basic Concepts
Copyright © 2004  South-Western
Open-Economy Macroeconomics: 
Basic Concepts 
•
Open and Closed Economies
•
A closed economy is one that does not interact with 
other economies in the world.
•
There are no exports, no imports, and no capital flows.
•
An open economy is one that interacts freely with 
other economies around the world.  
Copyright © 2004  South-Western
Open-Economy Macroeconomics: 
Basic Concepts 
•
An Open Economy
•
An open economy interacts with other countries in 
two ways.
•
It buys and sells goods and services in world product 
markets.
•
It buys and sells capital assets in world financial markets. 
Page 5


11 
THE MACROECONOMICS OF OPEN ECONOMIES
Copyright © 2004  South-Western
31
31
Open-Economy 
Macroeconomics: 
Basic Concepts
Copyright © 2004  South-Western
Open-Economy Macroeconomics: 
Basic Concepts 
•
Open and Closed Economies
•
A closed economy is one that does not interact with 
other economies in the world.
•
There are no exports, no imports, and no capital flows.
•
An open economy is one that interacts freely with 
other economies around the world.  
Copyright © 2004  South-Western
Open-Economy Macroeconomics: 
Basic Concepts 
•
An Open Economy
•
An open economy interacts with other countries in 
two ways.
•
It buys and sells goods and services in world product 
markets.
•
It buys and sells capital assets in world financial markets. 
Copyright © 2004  South-Western
THE INTERNATIONAL FLOW OF 
GOODS AND CAPITAL
•
An Open Economy
•
The United States is a very large and open economy
—it imports and exports huge quantities of goods 
and services.
•
Over the past four decades, international trade and 
finance have become increasingly important.  
Read More
Offer running on EduRev: Apply code STAYHOME200 to get INR 200 off on our premium plan EduRev Infinity!

Complete Syllabus of Commerce

Dynamic Test

Content Category

Related Searches

PPT -Open Economy Macroeconomics Commerce Notes | EduRev

,

Viva Questions

,

shortcuts and tricks

,

Extra Questions

,

Previous Year Questions with Solutions

,

PPT -Open Economy Macroeconomics Commerce Notes | EduRev

,

Semester Notes

,

Sample Paper

,

mock tests for examination

,

ppt

,

Free

,

study material

,

video lectures

,

past year papers

,

pdf

,

Objective type Questions

,

PPT -Open Economy Macroeconomics Commerce Notes | EduRev

,

Important questions

,

practice quizzes

,

MCQs

,

Summary

,

Exam

;