According to the foreign trade effect,if the U.S.price level rises then U.S.exports are more expensive for foreigners to buy so the level of real GDP decreases.

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When the U.S. price level rises, U.S. exports become more expensive for foreign buyers. This makes U.S. goods less competitive in foreign markets, leading to a decrease in demand for U.S. exports. As a result, the level of real GDP may decrease due to reduced export activity. This phenomenon is known as the foreign trade effect.

According to the Foreign Trade Effect,if the U