Tugas Pertemuan 10
DISCUSSION QUESTIONS
1. Discuss the relationship between the closed and the open economy multipliers.
2. Discuss the impact of both fixed and flexible exchange rates on macroeconomic
policy.
3. Provide a clear explanation of why, if net exports are negatively correlated with
GDP, fiscal policy is less effective in moving GDP, even in the Keynesian region of
aggregate supply.
4. Explain how an appreciation of a domestic currency can affect domestic GDP. Can
it affect the GDP of trading partners? What about a depreciation of the domestic
currency?
5. Discuss the role of saving and investment in a small open economy and show what
may happen if there is an increase in domestic investment.
6. Give an example of best-practice techniques and explain how they can be used to
increase a nation’s per capita output and standard of living.
7. Explain how a fiscal expansion in one country could stimulate production and
employment in other countries.
8. Explain how a nation’s international competitiveness differs from its productivity.
9. Consider a Keynesian economy in equilibrium at potential GDP. What sort of fiscalpolicy responses might be appropriate if the goal were to maintain that equilibrium
in the face of a depreciated domestic currency? An appreciated domestic currency?
Give at least two options for each case.
10. Explain why small economies with fixed exchange rates lose the ability to conduct
independent monetary policy.
11. Discuss some of the real-world complications that economic policy makers must
grapple with.