Economic growth in the rest of the world slows down.In the short run,one can expect output in the United States to ________ and the price level to ________.
A) increase; increase
B) decrease; decrease
C) decrease; increase
D) increase; decrease
E) remain unchanged; remain unchanged

Question

Quizplus · Accepted Answer

When economic growth slows down in the rest of the world, demand for U.S. exports typically decreases, leading to a reduction in U.S. output and a downward pressure on the price level.

Economic Growth in the Rest of the World Slows Down