The global economy enters a recession,thereby decreasing the level of U.S.exports.If the aggregate supply curve does not shift,then aggregate demand will ________,real GDP will ________,and the price level will ________.
A)increase;remain the same;increase
B)remain the same;increase;increase
C)increase;increase;remain the same
D)decrease;increase;increase
E)decrease;decrease;decrease

Question

Quizplus · Accepted Answer

A recession in the global economy would lead to a decrease in U.S. exports, reducing aggregate demand. With the aggregate supply curve unchanged, this decrease in aggregate demand would lead to a decrease in real GDP and a decrease in the price level.

The Global Economy Enters a Recession,thereby Decreasing the Level of U.S.exports.If