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In: Economics

8. Draw the goods market. Illustrate and explain how the market equilibrium would change under the...

8. Draw the goods market. Illustrate and explain how the market equilibrium would change under the following circumstances:

a. The U.S. dollar gained value compared to foreign currencies.

b. American corporations have become leaner which means that productivity in the U.S. has increased. Hint: How are prices in the U.S. affected, relative to foreign prices?

c. There is a decrease in transfer payments (ie, items like spending on social programs).

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Expert Solution

Rahul Sunny answered 1 week ago
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