Net Exports and the price level, Macroeconomics

Ok...

So if the price level is rising, this means that inflation is rising as well, so the value of the dollar in the US would decrease meaning that purchasing power decreases as well. According to this logic, Net Exports would increase because imports would become more expensive and exports would increase. According to my teacher this is wrong can you explain why?
Posted Date: 3/19/2013 12:27:34 PM | Location : United States







Related Discussions:- Net Exports and the price level, Assignment Help, Ask Question on Net Exports and the price level, Get Answer, Expert's Help, Net Exports and the price level Discussions

Write discussion on Net Exports and the price level
Your posts are moderated
Related Questions
How do you calculate variable unit costs and total annual costs? Ans) Annual units sold, 1000. Raw materials yearly cost 650. Building rent yearly cost 9000. If sales volume enh

Give example of commercial banks how they create money For example, the borrower uses the money to buy an apartment, the funds are transferred to the seller of the apartment. T

Q. What do you mean by Price index? Because we are only interested in percentage change of the price level and not particular value, we can divide every price level by a given

Example of Introducing the Government- ACCOUNTING SYSTEM   So far there was no government in any of our stylized economies. Let us now introduce it. To begin with, our governmen

Q. Explain the Says Law? GDP, and Say's Law Aggregate supply Y S = f(L, K) in the classical model where L is concluded in the labor market while K is

Liberalisation and Mode of Entry: Various new forms of FDI flows have also emerged. Besides mergers and  joint ventures, transactional relationships are emerging such  as lice

TRADE LIBERALISATION UNDER WTO: In  the Uruguay Round negotiations, India agreed to reduce tariff on a  large number of  commodities and  remove quantitative restrictions (QRs

Historically, shifts toward a more expansionary monetary policy have often been associated with increases in real output. Is this surprising? Why or why not? Can an expansion in th

1) Why does the adoption of Keynesian economics come out of the Great Depression? 1) Why does the adoption of Keynesian economics come out of the Great Depression? 2) What will ha

Financial Development A well developed financial system is very essential for the smooth functioning of any economy. One set of important statistical indicators that is used to