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Introduce about the open-economy macroeconomics shortly.
The Open Economy:
a. One of the major concerns introduced through open-economy macroeconomics is the exchange rate, which the price of one currency into terms of other.
b. Exchange rates can influence the aggregate price level.
c. They can also influence aggregate output by their consequence on the trade balance; the dissimilarity between the value of the goods and services a country sells to the other countries as well as the value of the goods and services that buys in return.
d. Economists are also associates about capital flows, which movements of financial assets across borders.
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Consider the following: An economy is found to have output, y = 20000 Also assume that the government runs a deficit where tax revenue T= 4000 and government expenditures G=5000
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Challenges to the American Labor Force
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