Answer to Question #325490 in Macroeconomics for Li Zhang

Question

Suppose a country wants to shift the composition of its economy so as to rely more on export and less on domestic demand, without increasing its output. Using the IS-LM model with international trade, perfect capital mobility and flexible exchange rate, explain what policy mix can be adopted to achieve this objective. Remember to label clearly the axes and the direction of any changes in your diagrams.

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order