Formula - Openness = (Ex-Imp)/GDP NCO(r-r*) (-ve related)...

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Y=AK a L b Profit = Revenue- Costs Pi= PY – {KR+LW} MP L =F(K, L+1) – F(K,L) MP L = (1-a) AK a L -a MP K =aAK a-1 L a-1 Classical Dichotomy – Real: Y,r,W/P (Real Wage) Nominal: M,P,W,L so A>Y means NX<0 means S<I
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Unformatted text preview: Openness = (Ex-Imp)/GDP NCO(r-r*) (-ve related) =lending to iraq- borrow from iraq Exports &amp; Borrowing from RoW Supply of f/x Imports &amp; Lending to RoW Demand for f/x...
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Formula - Openness = (Ex-Imp)/GDP NCO(r-r*) (-ve related)...

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