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If the U.S. currency becomes stronger (the value of a dollar increases), there is a change in international variables. How does this situation affect the
If the U.S. currency becomes stronger (the value of a dollar increases), there is a change in international variables. How does this situation affect the AD-AS diagram? What will happen to the equilibrium price level and real GDP in the short run, starting from the full employment equilibrium? Is the economy experiencing an inflationary gap or a recessionary gap? Explain how Classical economists and Keynesian economists view an economy (Hints: How to close the gap a result of given event)
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