Booms and recessions are transmitted to other countries.

Question

Quizplus · Accepted Answer

Booms and recessions can have international ramifications due to the interconnectedness of the global economy. Events in one country can impact the supply and demand of goods and services in other countries, leading to changes in economic activity and potentially triggering a ripple effect. For example, if a major economy such as the United States experiences a recession, this could reduce demand for goods and services from other countries, leading to slower economic growth in those areas as well.

Booms and Recessions Are Transmitted to Other Countries