Over the past few decades, both exports and imports have grown as a percentage of GDP in the United States.

a. What effect would an increase in exports have on the level of unemployment and the level of prices in the United States if the economy were operating far below full employment?

b. What effect would an increase in imports have on the level of unemployment and the level of prices in the United States if the economy were operating at full employment?

c. What effect would dumping a U.S.-produced good in a foreign country have on employment in the United States if that country responded by dumping one of its goods in U.S. markets?