If all the economies of the European Union experience a recession, the United States experiences ________ and the IS curve ________.
A) no change; stays constant
B) a positive aggregate demand shock; shifts right
C) a negative aggregate demand shock; shifts left
D) no change; shifts right
E) Not enough information is given.
Correct Answer:
Verified
Q60: Suppose Q61: Consider the consumption function Q62: In the late 1970s, the United States Q63: The basic IS model embodies the life-cycle Q64: Consider the following model of the IS Q66: The fundamental lesson of the life-cycle and Q67: _ provided a "natural experiment" for the Q68: In the late 1990s, the United States Q69: When the multiplier is included in the Q70: If we write the consumption function as
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