The global economy enters a recession,thereby decreasing the level of Australian 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)decrease;decrease;decrease
D)decrease;increase;increase
E)increase;increase;remain the same

Question

Quizplus · Accepted Answer

With a global recession and decreased level of Australian exports, aggregate demand will decrease, causing real GDP to also decrease. As a result, the price level will also decrease. This can be shown by movement along the unchanged aggregate supply curve, resulting in a lower equilibrium output and price level.

The Global Economy Enters a Recession,thereby Decreasing the Level of Australian