Lecture_07__02-01-11_

Lecture_07__02-01-11_ - de ( QX Slope = -PY PX ) Aut ark y...

Info iconThis preview shows pages 1–21. Sign up to view the full content.

View Full Document Right Arrow Icon
Survey of International Economics 02/01/11
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Upcoming Office Hours Tue, Feb 01 2:15 PM – 3:30 PM (Matusz) Wed, Feb 02 2:00 PM – 4:00 PM (Jung) Thu, Feb 04 10:40 AM – 12:40 PM (Alcocer) Fri, Feb 05 10:00 AM – noon (Jung) Tue, Feb 08 10:00 AM – 11:00 AM (Matusz) Tue, Feb 08 2:15 PM – 3:30 PM (Matusz) Wed, Feb 09 2:00 PM – 4:00 PM (Jung) Thu, Feb 10 10:40 AM – 12:40 PM (Alcocer)
Background image of page 2
Review from previous class: In autarky, production of each good must equal consumption of each good. With trade, an economy can consume more of a good than they produce (imports make up the difference) or produce more than they consume (exports). DY autarky SY autarky = DX autarky SX autarky = SY Trade SX Trade QY Slope = - PY PX ) Tra
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 12
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 14
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 16
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 18
Background image of page 19

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 20
Background image of page 21
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: de ( QX Slope = -PY PX ) Aut ark y ( DX Trade DY Trade E x p o r t s Imports Assume balanced trade (for now) so that the value of imports = value of exports. DY autarky SY autarky = DX autarky SX autarky = SY Trade SX Trade QY Slope = -PY PX ) Tra de ( QX Slope = -PY PX ) Aut ark y ( DX Trade DY Trade E x p o r t s Imports Gain from trade represented by the fact that trade allows the economy to consume more of both goods (compared with autarky) if it so chose. DY autarky SY autarky = DX autarky SX autarky = SY Trade SX Trade QY Slope = -PY PX ) Tra de ( QX Slope = -PY PX ) Aut ark y ( DX Trade DY Trade E x p o r t s Imports...
View Full Document

Page1 / 21

Lecture_07__02-01-11_ - de ( QX Slope = -PY PX ) Aut ark y...

This preview shows document pages 1 - 21. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online