If imports to the united states increased, what would most likely happen to price level and real gross domestic product?
price level / real gdp
increase / increase
increase / decrease
indeterminate / increase

Increase in Price Level and Decrease in Real GDP

Explanation:

An increase in imports is tied to the net-export effect which says that a higher price level is tied to a decrease in the relative price of foreing imports from other countries thus propiciating an increase imports

The Real GDP is the same as the GDP but without taking into account the price changess

This is the equation for the GDP:

GDP: Private consumption (C) + Gross investment (I) + Government spending (G) + (Exports(X) – Imports(M)).

An increase in imports means a decrease in the GDP and in the Real GDP.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total

um sure