a. Using symbols and explaining their meaning, distinguish between: (1) the domestic demand for goods; and (2) the demand for domestic goods for an open economy.
b. Explain why the demand for domestic goods curve (ZZ) has a different slope than the domestic demand for goods curve (DD).
b. Using fully labeled ZZ/Y and NX/Y figures, illustrate graphically and EXPLAIN INTUITIVELY (i.e., by economic relationships) what effect, if any, an increase in taxes has on output, exports, imports, and net exports.
a) The demand for domestic goods represents the demand for goods produced IN a country. This measure will take into account... View the full answer