Macroeconomic Help Rep ReturnsWatch
If an economy is driven by exports and has a lot of export growth, assuming ceteris paribus would and they do not use any sort of monetary or fiscal policy would this economy fall into deflation due to lack of demand pull and cost push inflation eventually?
real wages do not change in the long term, because workers and employers can adjust wages
Why would an increase in exports lead to an increase in costs, or a decrease in demand within the country?
could deflation eventually occur?