If nominal wages remain unchanged while the price level rises due to an increase in exports, it is true that real wages will decline, indicating a negative impact on domestic purchasing power in the short run.

When nominal wages stay the same but the price level goes up, it means that the cost of goods and services increases. This rise in prices reduces the value of money, meaning that even though people earn the same amount, they can buy less with it. For example, if someone earns $1,000 a month and the price of groceries increases, they might find that they can only buy fewer items than before with that same $1,000. This situation indicates that real wages, which take into account the cost of living, have decreased. So, in the short run, even if workers are paid the same, they feel poorer because their money doesn’t stretch as far as it used to.