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Suppose the Irish economy is at full employment. Suppose in a few months, the exchange rate of the Irish national currency, the punt, will decline, giving the Irish relatively less purchasing power in foreign markets. What will happen to the price level and real GDP in Ireland

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ogorwyne

What is going to happen to the price level and the real GDP of Ireland is that The price level will not change, and the real GDP will fall.

Why would the real GDP fall?

Because the value of the currency is on a decline, the exchange rate of this nation is also on a decline.

The effect is that the purchasing power of the people is going to fall. People would begin to demand less for goods and services in the nation.

Read more on GDP here:

https://brainly.com/question/1383956

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