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Ps LRAS AD 110 AD' * AS' AS 100 90 GDPr 0 38 40 42 AD' and AS reach a short-run equilibrium at GDPr: Oo
Ps LRAS AD" 110 AD' * AS' AS" 100 90 GDPr 0 38 40 42 AD' and AS" reach a short-run equilibrium at GDPr: Oo O 38 O 40 O 42The foreign trade effect says that during recession: 0 less imports are afforded O discounting boosts exports 0 more tourists are lured in by lower domestic prices 0 all of these
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