If there a country's imports exceed in value its exports,the domestic currency depreciates and trade adjustments start taking place.Under this scenario how does the employment of resources affect the amount of currency depreciation required to shift domestic resources to the production of more exports and import substitutes?

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The greater the employment of resources (i.e., a lower unemployment rate), the more difficult it becomes to shift resources towards the production of exports and import substitutes without causing inflationary pressures. Therefore, a greater depreciation of the nation's currency may be needed to make domestic goods cheaper and more competitive internationally, encouraging a shift in production towards exports and import substitutes.

If There a Country's Imports Exceed in Value Its Exports,the