In using the open-economy macroeconomic model to analyse an event, the first step is to:
A)determine which of the supply and demand curves the event affects
B)determine which way the curves shift
C)use the supply-and-demand diagrams to examine how the shifts alter the economy's equilibrium
D)it doesn't matter in which order the steps are taken

Question

Quizplus · Accepted Answer

Determining which of the supply and demand curves the event affects is the first step in using the open-economy macroeconomic model to analyze an event. This initial step is crucial for understanding the direction of subsequent analysis and impacts.

In Using the Open-Economy Macroeconomic Model to Analyse an Event