9. The DD schedule shows that the equilibrium output will decline in the short run when the exchange rate rises.
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8. Exchange rate should be proportional to the domestic price level and conversely proportional to foreign price level according to purchasing power parity.
7. Overshooting refers to the phenomenon that the long-run response of exchange rate to a disturbance is greater than the short-run response.
6. Official debt forgiveness should be recorded in financial account of the balance payments.
5. Venezuela is the richest country in petroleum in the world and mainly exports oil, a technological advance in the use of new energy makes it better off.