Answer to Question #62656 in Macroeconomics for Asca

Question

What is assumed in the Mundell-Fleming model about goods prices? (several answers can be correct)
(a) They are fixed because the economy is operating below its full capacity.
(b) They are fixed because the economy is operating at its full capacity.
(c) They are flexible because the economy is operating at its full capacity.
(d) There are no assumptions about the goods prices because the model does not treat them explicitly.

Answer 1

Dear Asca, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order