This preview shows page 1. Sign up to view the full content.
Unformatted text preview: l GDP
174 • Positive net exports increase aggregate expenditures on domestic output and increase
• Negative net exports decrease aggregate expenditures on domestic output and reduce
√ Prosperity aboard: Rising level of national income among our trading partners will enable us
to sell more of our exports. (Japan’s 10-year recession has hurt our export sales to Japan)
√ Tariffs: Tariffs on their side reduce export sales; retaliation is an issue. (Think of Great
Depression and Hoot-Smalley Tariff)
√ Exchange Rates: Depreciation of $ will stimulate exports and lower imports exp...
View Full Document
This note was uploaded on 01/30/2014 for the course ECON 259 taught by Professor Geanakopolis during the Fall '10 term at Purdue University-West Lafayette.
- Fall '10