Using the DD model, explain what happens to out put when ...

[K@]

Using the DD model, explain what happens to out put when Government demands increase. Use a figure to explain when it is taking place.
 
  What will be an ideal response?

Question 2

The World Trade Organization provides for all of the following EXCEPT
 
  A) the usage of the most favored nation clause.
  B) assistance in the settlement of trade disagreements.
  C) bilateral tariff reductions.
  D) multilateral tariff reductions.
  E) the prevention of nontariff interventions in trade.

[kalskdjl1212]

Answer to Question 1

The figure below shows the G1 to G2 raises output at every level of the exchange rate. The change shifts the DD to the right. Which in turns increases output to Y2.

Answer to Question 2

C