Question: 6. Why is scal coordination, such as the common increase in G in (5), difcult to achieve in practice? D. In the openeconomy goods market,

 6. Why is scal coordination, such as the common increase in

6. Why is scal coordination, such as the common increase in G in (5), difcult to achieve in practice? D. In the openeconomy goods market, let DD = C + I + G and ZZ=C+I+G+XQ Assume e = 1 initially and dene net exports as N X = X Q 1. Draw DD and Z Z lines, together with a 45 degree line, to show goods-market equilib rium with balanced trade, i.e. with N X = 0. In a separate graph, show net exports (N X ) as a function of output (Y). Clearly label the axes in both graphs. 2. Draw DD and Z Z lines, together with a 45 degree line, to show goods-market equilib- rium with a trade surplus, i.e. with N X > 0. In a separate graph, show net exports (N X ) as a function of output (Y). Clearly label the axes in both graphs. 3. Draw DD and Z Z lines, together with a 45 degree line, to show goods-market equi librium with a trade decit, i.e. with N X

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