In an open economy as the price level decreases, a(n) ____ in demand for domestic goods relative to foreign goods results in a(n) ____ in the quantity of RGDP demanded.
a. increase, decrease
b. increase, increase
c. decrease, decrease
d. decrease, increase
Question 2
If Saving+Tax+Import > Investment+Government spending+Export, then _____ must fall to establish macroeconomic equilibrium.
a. net exports
b. gross exports
c. taxes
d. real GDP
e. government spending
