In the short run Recessions in South Korea and Indonesia will cause
A)the U.S.price level and real GDP to rise.
B)the U.S.price level and real GDP to fall.
C)the U.S.price level to rise and real GDP to fall.
D)the U.S.price level to fall and real GDP to rise.

Question

Quizplus · Accepted Answer

Recessions in South Korea and Indonesia would likely lead to a decrease in their demand for U.S. exports, causing a decrease in U.S. aggregate demand. This would result in a lower U.S. price level and a decrease in real GDP in the short run.

In the Short Run Recessions in South Korea and Indonesia