-Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B.
B) It shifts to a point such as C.
C) It shifts to a point such as A.
D) None of the above answers are correct because it is the SAS curve that shifts, not the AD

Question

-Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B. 
B) It shifts to a point such as C. 
C) It shifts to a point such as A. 
D) None of the above answers are correct because it is the SAS curve that shifts, not the AD

Quizplus · Accepted Answer

The Answer of 
-Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B. 
B) It shifts to a point such as C. 
C) It shifts to a point such as A. 
D) None of the above answers are correct because it is the SAS curve that shifts, not the AD

-Suppose the Economy Is at Point B