In Using the Open-Economy Macroeconomic Model to Analyse an Event

Multiple Choice

In using the open-economy macroeconomic model to analyse an event, the first step is to:

A) determine which of the supply and demand curves the event affects
B) determine which way the curves shift
C) use the supply-and-demand diagrams to examine how the shifts alter the economy's equilibrium
D) it doesn't matter in which order the steps are taken