Using the ZZ / Y and NX Graphs,illustrate Graphically and Explain

question 11

Essay

Using the ZZ / Y and NX graphs,illustrate graphically and explain what effect an increase in foreign output (Y*)will have on output,exports,imports,and net exports.Clearly label all curves and clearly label the initial and final equilibria.

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Definitions:

Sail-Away Corporation

A term referring to companies that are set up and operated to avoid taxes and regulations, typically by operating in a jurisdiction other than where they conduct business.

Due Care

The effort made by an individual to avoid harm to other people or their property.

Product Liability

The legal responsibility of manufacturers, wholesalers, or retailers for injuries caused by defective or unexpected dangerous products they provide.

Design Defect

A flaw in the planned or intended design of a product that results in an unsafe or ineffective product.