Answer:
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.
