7-2: Equilibrium Output and the frade Balance The goods market is in equilibrium when domestic output equals the demand for domestic goods Collecting the relations we derived for the components of the demand for domestic goods, Z, Y=cCYT)+(Yr)+G-EQ(,)+X(Y*,)(74) 2003-7-13 92003-7-13 9 7-2: Equilibrium Output and the Trade Balance The goods market is in equilibrium when domestic output equals the demand for domestic goods: Y=Z Collecting the relations we derived for the components of the demand for domestic goods,Z, Y=c(Y-T)+I(Y,r)+G-εQ(Y,ε)+X(Y*,ε) (7.4)