economic growth and employment/unemployment

• What is the effect of a weaker exchange rate on exports?

  A weaker exchange rate is likely to increase exports.
• How does a weaker exchange rate affect imports?

  A weaker exchange rate is likely to decrease imports.
• What is the overall impact of a weaker exchange rate on aggregate demand (AD)?

  A weaker exchange rate is likely to lead to an increase in aggregate demand (AD).
• What are the economic outcomes of an increase in aggregate demand due to a weaker exchange rate?

  An increase in aggregate demand will increase employment and economic growth.
• What happens to exports when the exchange rate weakens?

  Exports increase.
• What happens to imports when the exchange rate weakens?

  Imports decrease.
• What is the relationship between a weaker exchange rate and employment?

  A weaker exchange rate can lead to an increase in employment.
• How does an increase in aggregate demand affect economic growth?

  An increase in aggregate demand is likely to lead to economic growth.