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Transcript 
Copyright © 2002 Pearson Education, Inc.
Slide 1
Chapter 12
International Trade in
Goods and Assets
Copyright © 2002 Pearson Education, Inc.
Slide 2
Figure 12-1 Production Possibilities Frontier for
Tinyland
Copyright © 2002 Pearson Education, Inc.
Slide 3
Figure 12-2 Indifference Curves of the
Representative Consumer in Tinyland
Copyright © 2002 Pearson Education, Inc.
Slide 4
Figure 12-3 Equilibrium in Tinyland with No
Trade
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Slide 5
Figure 12-4 Production and Consumption in
Tinyland with Trade
Copyright © 2002 Pearson Education, Inc.
Slide 6
Figure 12-5 An Increase in Welfare when Good a
Is Imported
Copyright © 2002 Pearson Education, Inc.
Slide 7
Figure 12-6 An Increase in Welfare when Good b
Is Imported
Copyright © 2002 Pearson Education, Inc.
Slide 8
Figure 12-7 An Increase in the Terms of Trade
when Good a Is Initially Imported
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Slide 9
Figure 12-8 An Increase in the Terms of Trade
when Good b Is Initially Imported
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Slide 10
Figure 12-9 The Two-Period Small
Open-Economy Model
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Slide 11
Figure 12-10 Deviations from Trend in Net
Exports and GDP
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Slide 12
Figure 12-11 Government Spending and Taxes
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Slide 13
Figure 12-12 The Twin Deficits
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Slide 14
Figure 12-13 A Small Open-Economy Model with
Production and Investment
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Slide 15
Figure 12-14 An Increase in the World Real
Interest Rate
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Slide 16
Figure 12-15 A Temporary Increase in
Government Spending
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Slide 17
Figure 12-16 A Permanent Increase in
Government Spending
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Slide 18
Figure 12-17 An Increase in Current Total Factor
Productivity
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Slide 19
Figure 12-18 An Increase in Future Total Factor
Productivity
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Slide 20
Figure 12-19 Investment as a Percentage of
GDP
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Slide 21
Figure 12-20 An Increase in the Capital Stock
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Slide 22
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