How does a recession in Asia affect U.S. aggregate demand and the ...

[chads108]

How does a recession in Asia affect U.S. aggregate demand and the U.S. aggregate demand curve?
 
  What will be an ideal response?

Question 2

When an expansion is triggered by a(n) ________ in autonomous expenditure, the economy turns the corner into ________, and aggregate planned expenditure exceeds real GDP. Firms' inventories ________.
 
  A) increase; recession; decrease
  B) increase; recession; increase
  C) increase; expansion; increase
  D) increase; expansion; decrease
  E) decrease; expansion; decrease

[SAUXC]

Answer to Question 1

A recession in Asia means that Asians purchase fewer U.S.-made goods and services. As a result, U.S. exports decrease so that U.S. aggregate demand decreases and the U.S. aggregate demand curve shifts leftward.

Answer to Question 2

D

[chads108]

YES! Correct, THANKS for helping me on my review

[CAPTAINAMERICA]

Thanks for the timely response, appreciate it