1. Consider the output market and the DD schedule. Choose correct words below. 1.a. \"When Home currency appreciated, the aggregate demand curve would shift (down I up). Because of shift, the equilibrium point would move (down I up) along the line of the equilibrium condition D = Y. So, the equilibrium real output in the output market would (decrease I increase).\" lb. \"The DD schedule is upward sloping because the relationship between E and equilibrium Y in the output market is (negative I positive). When one of PH, PF, 1, G and T changes, the aggregate demand curve (Will I will not) shift in the output market, and the DD schedule (will I will not) shift in the gure of Y'E.\" Fig. 17-5: Aggregate demand, D D = Y Government D(EP /P, Y - T, I, G2) Government Aggregate demand curves spending Demand and the rises D( EOP . /P, Y - T, I, G') Position of the DD Schedule y2 Output, Y Exchange rate, E DD DD2 GI