Solution-Income abroad reduces domestic exports

Income abroad reduces domestic exports

Assignment Help Basic Computer Science

Reference no: EM132162022

Suppose the economy is initially in the long-run equilibrium, but a drop in income abroad reduces domestic exports. The AD curve will shift to the left. What will be the impact?

Select all that apply:

In the short run, both prices and output will fall.
In the short run, prices will fall but output will stay the same.
In the long, run prices and output remain the same.
In the long run prices fall but output stays the same.

Reference no: EM132162022

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Income abroad reduces domestic exports

Reference no: EM132162022

Reference no: EM132162022

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