"The global financial crisis has had a considerable impact on China's export growth, which will continue to show weakness with recession in the U.S. and Europe," said a report by JP Morgan & Co.
Www)money.cnn.com, 11/11/2008
If Chinese exports continue to decline, the AE curve will shift ________, the price level will ________ in the long run and real GDP will ________ in the long run.

Question

Quizplus · Accepted Answer

The AE (Aggregate Expenditure) curve will shift downward due to declining exports, leading to a decrease in the price level. However, in the long run, real GDP will not change due to the economy's ability to adjust through changes in wages and prices.

"The Global Financial Crisis Has Had a Considerable Impact on China's