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5. What does the following figure show? Explain in 1-2 sentences. Country's annual inflation less Germany's annual inflation (percent per year) 20 15 froland 10

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5. What does the following figure show? Explain in 1-2 sentences. Country's annual inflation less Germany's annual inflation (percent per year) 20 15 froland 10 Franco Italy 5 Derimark Belgium Netherlands 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 6. This question deals with Internal and External Balance, and the so-called Zones of Economic Discomfort. Exchange rato, E XX (CA =X) Question: Where would you Zone 1: Overemployment, put the following countries excessive current account surplus (pre-Coronavirus pandemic): the U.S., China, Germany and Japan? Just state where they Zone 4: Zone 2 Underemployment. Overemployment, would be in this quadrant, excessive current excessive current account surplus account deficit explain why in one sentence each. Zong 3: Underemployment. Hint: they could be anywhere excessive current account deficit in that space. Domestic spending, A

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