Suppose that many countries in Europe sink into recession.In the short run,output in the United States will ________ and the price level will ________.
A) increase; increase
B) decrease; decrease
C) remain unaffected; remain unaffected
D) decrease; remain unaffected
E) increase; remain unaffected

Question

Quizplus · Accepted Answer

A recession in Europe would likely lead to decreased demand for U.S. exports, reducing output and potentially leading to a decrease in the price level in the short run.

Suppose That Many Countries in Europe Sink into Recession