"The global financial crisis has had a considerable impact on China's export growth, which will continue to show weakness with recession in the U.S. and Europe," said a report by JP Morgan & Co. www.money.cnn.com, 11/11/2008
If Chinese exports continue to decline, the AE curve will shift ________, the price level will ________ in the short run and real GDP will ________ in the short run.

Question

Quizplus · Accepted Answer

The AE (Aggregate Expenditure) curve will shift downward due to decreased exports, leading to a decrease in the price level and a decrease in real GDP in the short run, as lower exports reduce overall demand in the economy.

"The Global Financial Crisis Has Had a Considerable Impact on China's