An exchange rate shock would tend to increase unemployment.

Name: An exchange rate shock would tend to increase unemployment.
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An exchange rate shock, especially an appreciation of the domestic currency, can make domestic goods more expensive relative to foreign goods, reducing exports and increasing imports. This can lead to a decrease in domestic production and, consequently, an increase in unemployment as firms lay off workers in response to reduced demand for their products.

An Exchange Rate Shock Would Tend to Increase Unemployment