Suppose That, as a Result of Accelerated Growth in the European

question 14

Essay

Suppose that, as a result of accelerated growth in the European countries, the demand for U.S. exports increases.
(A) If U.S. imparts are unaffected, which way will the expenciture line shift?
(B) What will happen to the agPregate demand curve and the level af real GDp?
(C) If the U.S. economy was initially at patential GDP, is the econamy now in a recessian