Question: Assuming the economy is operating below its potential output, how does an increase in net exports affect real GDP? Why is it difficult, perhaps

Assuming the economy is operating below its potential output, how does an increase in net exports affect real

Assuming the economy is operating below its potential output, how does an increase in net exports affect real GDP? Why is it difficult, perhaps even impossible, for a country to boost its net exports by increasing its tariffs during a global recession?

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Solution An increase in net exports means that the country is exporting more than it is importing wh... View full answer

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