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Suppose initially the economy is in equilibrium with balanced trade, as shown by O point A on the graph on the right. 1.) Using the

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Suppose initially the economy is in equilibrium with balanced trade, as shown by O point A on the graph on the right. 1.) Using the line drawing tool, show the effect of an increase in foreign output on the domestic economy. Label your line(s) appropriately. 2.) Using the point drawing tool, label your new equilibrium point 'B'. DD Carefully follow the instructions above and only draw the required objects. Demand, Z ZZ A Output, Y

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