A recession in Japan ______ the demand for exports from East Asian countries resulting in a reduction in autonomous expenditures in these East Asian countries and a(n) ______ output gap in the East Asian countries.
A)reduces; expansionary
B)increases; expansionary
C)reduces; recessionary
D)increases; recessionary

Question

Quizplus · Accepted Answer

A recession in Japan would reduce the demand for exports from East Asian countries, leading to a decrease in autonomous expenditures and creating a recessionary output gap in these countries.

A Recession in Japan ______ the Demand for Exports from East