When the economy is operating below its potential output the impact or the rate of the...

When the economy is operating below its potential output the impact or the rate of the economy is referred as a general rule rice in the prices of goods, as we know everything is measured by its price and weight, so at the end the material will be expensive, it’s difficult for the country to boost it net because the people that will affect or will be affected in this case will be teenagers, people who have low skills, less education people who do not have education and people who have low income ‏, so the individual will decline as there is rise in the rate of inflation

Assuming the economy is operating below its potential output, what is the impact of an increase in net exports on real GDP? Why is it difficult, if not impossible, for a country to boost its net exports by increasing its tariffs during a global recession?

Expert Solution

Rahul Sunny answered 3 weeks ago

Assuming the economy is operating below its potential output, how does an increase in net exports...

Assuming the economy is operating below its potential output, how does an increase in net exports affect real GDP? Why is it difficult, perhaps even impossible, for a country to boost its net exports by increasing its tariffs during a global recession? Use examples.

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