Other things equal, a decrease in an economy's exports due to recession in USA will:

Question

Quizplus · Accepted Answer

A decrease in exports due to a recession in the USA would lead to a decrease in aggregate expenditures in Canada (since exports are a component of aggregate expenditures). This, in turn, would decrease the equilibrium GDP in Canada, as the economy would be losing income from abroad, leading to a reduction in overall spending and economic activity.

Other Things Equal, a Decrease in an Economy's Exports Due