Economics
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Boundless Economics
Open Economy Macroeconomics
Economics Textbooks Boundless Economics Open Economy Macroeconomics
Economics Textbooks Boundless Economics
Economics Textbooks
Economics

Section 3

Equilibrium

Book Version 3
By Boundless
Boundless Economics
Economics
by Boundless
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3 concepts
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Open Economy Equilibrium

In an open economy, equilibrium is achieved when no external influences are present; the state of equilibrium between the variables will not change.

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Impacts of Policies and Events on Equilibrium

Government policies and outside events may affect the macroeconomic equilibrium by shifting aggregate supply or aggregate demand.

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Effect of a Government Budget Deficit on Investment and Equilibrium

A budget deficit will typically increase the equilibrium output and prices, but this may be offset by crowding out.

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