Europe and Asia Both Fall into Deep Economic Recessions

question 172

Multiple Choice

Europe and Asia both fall into deep economic recessions. What impact will this have on U.S. aggregate demand?

• A) None. A nation's aggregate demand is only affected by its own economic conditions.
• B) U.S. aggregate demand will remain unchanged.
• C) U.S. aggregate demand will decrease.
• D) The U.S. aggregate demand curve will shift to the right.

Recognize the roles and impacts of tariffs, quotas, and protectionist measures on global trade and national economies.

Identify the effects of trade measures on the price of domestic goods and the global economy.

Understand the influence of global marketing developments on international trade.

Recognize the role and functions of the World Trade Organization (WTO) in facilitating and regulating international trade.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, represented by the equity stockholders have from share investments and retained earnings.

Stock Traded

Shares of a company that are bought and sold on a stock exchange platform.

Shares

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Unissued Stock

Shares that a company is authorized to issue according to its corporate charter but has not yet issued to shareholders.