By a closed national economy one understands a theoretical national economy, which does not stand with other national economies in the world in connection in the

There is actually no completely closed national economy. The model of a closed national economy serves however occasionally also the simplifying analysis of a national national economy. In the closed national economy there are no foreign trade and also no capital obligations (see also net exports). No economic activities exist beyond the regarded borders.

The identity

• Y (GROS DOMESTIC PRODUCT) = C (consumption) + I (investments) + G (public expenditures) + NX ONE (net exports) can be shortened so too
• Y = C + I + G

There Y - C - G overall economic saving (s) is called, results from it

• I = S (in a closed national economy!)

An open national economy opposes a closed.

World as national economy: It is one regards the whole world as only one national economy, as it is done approximately for the computation of world economy growth. As long as there is no interplanetary trade, the earth finally represents a genuine closed national economy.

Articles in category "Closed national economy"

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