Other things equal, a serious recession in the economies of U.S. trading partners will
A) have no perceptible impact on the U.S. economy.
B) cause inﬂation in the U.S. economy.
C) depress real output and employment in the U.S. economy.
D) stimulate real output and employment in the U.S. economy.

Question

Quizplus · Accepted Answer

A serious recession in the economies of U.S. trading partners will depress real output and employment in the U.S. economy as the demand for U.S. exports will decrease, leading to lower production and employment in exporting industries. Additionally, decreased demand for imported goods from trading partners will negatively impact U.S. businesses that rely on international trade.

Other Things Equal, a Serious Recession in the Economies of U.S