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a. Determine how the falling value of the dollar affects the US price level, real GDP and the unemployment rate in both short-run and the
a. Determine how the falling value of the dollar affects the US price level, real GDP and the unemployment rate in both short-run and the long-run. You can assume that the economy was in the long-run equilibrium before this change, and consider only the stated event. Place your answers in the boxes below (using an up arrow, a down arrow, or a dash if the level is constant}. \" b. Draw a diagram that supports your answers in part (a). Clearly label all the curves and equilibria as well as show the direction of changes using arrows
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