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Suppose the United States made a diplomatic error which caused Mexico to ban exports coming in from the US. As a result

A

Price Level would increase, output would fall.

B

Aggregate Demand would shift left and price level would fall.

C

US income would rise and net exports would rise.

D

unemployment levels would not change; Aggregate Demand stays constant.

E

Aggregate Supply in the US would shift right immediately and unemployment would fall.

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