Suppose a country's output is below the policy makers' desired level of output and is experiencing a trade surplus.Assume that the policy makers' goals are to achieve the desired level of output (i.e.,full employment output)and balanced trade.Given this information,what type of exchange rate and / or fiscal policy can be used to achieve simultaneously these two goals? Explain.

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The Answer of Suppose a country's output is below the policy makers' desired level of output and is experiencing a trade surplus.Assume that the policy makers' goals are to achieve the desired level of output (i.e.,full employment output)and balanced trade.Given this information,what type of exchange rate and / or fiscal policy can be used to achieve simultaneously these two goals? Explain.

Suppose a Country's Output Is Below the Policy Makers' Desired