Explain the three distinct notions of openness. What will be ...

[chads108]

Explain the three distinct notions of openness.
 
  What will be an ideal response?

Question 2

Data for which country were first used to illustrate the relationship between unemployment and inflation (i.e., the original Phillips curve)?
 
  A) France
  B) United States
  C) Canada
  D) Germany
  E) none of the above

[komodo7]

Answer to Question 1

There are three notions of openness. First, there is openness in the goods market where agents buy domestic and foreign goods and domestic firms sell goods abroad. Second, there is openness in financial markets where individuals can purchase, for example, domestic or foreign bonds. And third, there is openness in factor markets where firms can locate either domestically or in other countries. Workers can also move between countries.

Answer to Question 2

E

[chads108]

Excellent

[sultansheikh]

Thanks for the timely response, appreciate it