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If All the Economies of the European Union Experience a Recession

Question 16

Multiple Choice

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:

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