Are the concepts of demand for domestic goods and domestic demand for goods the same?
No, the concepts of demand for domestic goods and domestic demand for goods are not same.
Demand for domestic goods means the demand for goods by domestic and foreign consumers.
However domestic demand for goods is the demand for goods produced domestically as well as abroad.
Demand for domestic goods = C + I + G + X – M = Domestic demand for goods + X – M
Domestic demand for goods = C + I + G
Therefore demand for domestic goods is a wider term than domestic demand for goods and includes it.
Suppose it takes 1.25 yen to buy a rupee, and the price level in Japan is 3 and the price level in India is 1.2. Calculate the real exchange rate between India and Japan (the price of Japanese goods in terms of Indian goods). (Hint: First find out the nominal exchange rate as a price of yen in rupees).