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Suppose that Canada experiences a recession and, as a result, reduces imports of US goods. Using the short-run model, what will be the impact on the US economy? Pick all that apply. Inflation will fall The PC curve will shift down The PC curve will shift up Short run output will be negative Short run output will be zero The IS curve will shift left The IS curve will shift right Inflation will stay constant Short run output will be positive O Inflation will rise

Suppose that Canada experiences a recession and, as a result, reduces imports of US goods. Using the short-run model, what will be the impact on the US economy? Pick all that apply. Inflation will fall The PC curve will shift down The PC curve will shift up Short run output will be negative Short run output will be zero The IS curve will shift left The IS curve will shift right Inflation will stay constant Short run output will be positive O Inflation will rise

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
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Suppose that Canada experiences a recession and, as a result, reduces imports of US goods. Using the short-run model, what will be the impact on the US economy? Pick all that apply. Inflation will fall The PC curve will shift down The PC curve will shift up Short run output will be negative Short run output will be zero The IS curve will shift left The IS curve will shift right Inflation will stay constant Short run output will be positive Inflation will rise
Transcribed Image Text:Suppose that Canada experiences a recession and, as a result, reduces imports of US goods. Using the short-run model, what will be the impact on the US economy? Pick all that apply. Inflation will fall The PC curve will shift down The PC curve will shift up Short run output will be negative Short run output will be zero The IS curve will shift left The IS curve will shift right Inflation will stay constant Short run output will be positive Inflation will rise
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