Author Question: Explain the difference between: (1 ) the demand for domestic goods; and (2 ) the domestic demand for ... (Read 116 times)

newbem · **on:** Jun 30, 2018

Explain the difference between: (1 ) the demand for domestic goods; and (2 ) the domestic demand for goods.

What will be an ideal response?

Question 2

The evidence for the U.S. suggests that the natural rate of unemployment has

A) increased by more than 5 since the 1960s.
B) increased by 1 to 2 since the 1960s.
C) decreased from 2000-2007, lower than it had been in the 1980s.
D) decreased by more than 5 since the 1960s.
E) fluctuated over time since the 1960s.

janeli · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The demand for domestic goods represents the demand for goods produced IN a country. This measure will take into account those goods produced domestically and sold abroad (exports) and the fact that some goods purchased domestically were produced abroad (imports). The domestic demand for goods represents the demand for goods by domestic individuals, firms, and government: C + I + G. The difference between the two is NX.

Answer to Question 2

C