The economy of Country A is currently in a recession. The government increases its budget deficit whilst, at the same time, the exchange rate of its currency falls. These events are most likely to lead to a rise in
the foreign currency price of Country A's exports and a rise in inflation.
the rate of growth of real GDP and a fall in unemployment.
the domestic price of imported goods and a rise in unemployment.
labor productivity and the size of the economy's negative output gap.
