How do all the automatic adjustment mechanisms operate together to correct a deficit in a nation 's balance of payments under a fixed or managed exchange rate system when the nation operates at less than full employment What is the disadvantage of each automatic adjustment mechanism ...

If the economy is at less than full employment and the exchange rate is fixed a depreciation of the ...

How do all the automatic adjustment mechanisms operate together to correct a deficit in a nation's balance

Question:

How do all the automatic adjustment mechanisms operate together to correct a deficit in a nation's balance of payments under a fixed or managed system when the nation operates at less than full employment? What is the disadvantage of each automatic adjustment mechanism?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...