January 16

Post date: Jan 16, 2013 10:06:50 PM

What to study for the open economy test

1. Absolute Advantage

2. Comparative Advantage

3. How gains from trade can be shown on supply and demand graph

4. The affects of tariffs and quotas.

5. Current account, financial account, balance of trade

6. Exchange rate determination

7. Graphing exchange rates

8. What affects supply and demand on exchange rates

9. Fixed exchange rates versus floating exchange rates

10. Affects of fiscal and monetary policy and exchange rates

11. General changes in exchange rates and connections to other economic factors (aggregate supply and demand)