A reporter for the Wall Street Journal wrote, "A strong dollar and weak growth overseas portend downward pressure on U.S. exports."
a. What does the reporter mean by a "strong dollar"?
b. What does the reporter mean by "weak growth overseas"?
c. Briefly explain why the combination of a strong dollar and weak growth overseas might result in lower U.S. exports.
d. Will the result of a strong dollar be a movement along the U.S. aggregate demand curve or a shift of the aggregate demand curve? Briefly explain.