A fall in the relative prices of a country's exports tends to increase that country's net exports, and, thereby, to raise its real GDP.

Question

Quizplus · Accepted Answer

A fall in the relative prices of a country's exports means that they are cheaper compared to other countries, which will increase demand for those exports, leading to an increase in net exports and potentially an increase in real GDP.

A Fall in the Relative Prices of a Country's Exports