A depreciation of the U.S. Dollar against the Chinese yuan will likely shift the U.S. Aggregate demand curve to the right, leading to an increase in output in the short run.
A depreciation of the US Dollar makes US products relatively cheaper in the international markets and therefore a larger amount would be demanded. This is why the aggregate demand curve shifts to the right. In the new equilibrium after the shift and the demand increase, a larger amount of products will be exchanged in the short run. Therefore total output experiences a boost.
