Question: Suppose we drop the assumption that net exports do not depend on real GDP. Draw a graph with the value of net exports on the

Suppose we drop the assumption that net exports do not depend on real GDP. Draw a graph with the value of net exports on the vertical axis and the value of real GDP on the horizontal axis. Now, add a line representing the relationship between net exports and real GDP. Does your net exports line have a positive or negative slope? Briefly explain.

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Net exports equal the value of exports minus the value of imports Net exports is graphed as a ... View full answer

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