Determine the effects on real gdp and unemployment


Problem

You work for Dr. Zhang, the autocratic dictator of Zhouland. After taking an economics course, you decide that devaluing your currency (Zhoullars) is the way to increase GDP. Following your advice, Dr. Zhang orders massive increases in the supply of Zhoullars, a move that reduces the value of Zhoullars in world markets. As a result, exports to the world are cheaper and imports into Zhouland are more expensive. Use the AD-AS model to determine the effects on real GDP, unemployment, and the price level in Zhouland in both the short run and the long run. Assume the economy was in long-run equilibrium before this change, and consider only this stated change.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine the effects on real gdp and unemployment
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