Author Question: How does a recession in Asia affect U.S. aggregate demand and the U.S. aggregate demand curve? ... (Read 123 times)

chads108 · **on:** Jun 29, 2018

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 · **Reply #1 on:** Jun 29, 2018

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