If European economies enter a recession,
A)the quantity of real GDP demanded in the United States increases and there is a movement up along the U.S. AD curve.
B)U.S. aggregate demand decreases and the U.S. AD curve shifts leftward.
C)U.S. aggregate demand increases and the U.S. AD curve shifts rightward.
D)U.S. aggregate demand decreases and the U.S. AD curve shifts rightward.
E)the quantity of real GDP demanded in the United States decreases and there is a movement down along the U.S. AD curve.

Question

Quizplus · Accepted Answer

A recession in European economies would likely lead to a decrease in demand for U.S. exports, reducing U.S. aggregate demand and causing the AD curve to shift leftward.

If European Economies Enter a Recession