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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,

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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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