[Related to Solved Problem 13.1 on page 442] In 2017, an
article in the Wall Street Journal discussing the latest data
on U.S. net exports noted that, along with other currencies, “the [Chinese] yuan has risen this year against the
dollar.” The article also noted that there had been “stronger [economic] growth in Asia and Europe.”
a. What does the article mean by noting that the yuan
had “risen” against the dollar?
b. Briefly explain whether the combination of other currencies rising against the dollar and stronger economic
growth in Asia and Europe had led to an increase or a
decrease in U.S. net exports.
c. Will the outcome you discuss in part (b) result in a
movement along the U.S. aggregate demand curve or
a shift of the curve? Briefly explain.
Source: Josh Mitchell, “U.S. Trade Gap Shrinks as Exports Rise,” Wall
Street Journal, April 4, 2017.