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During the pandemic, the Asian economy's spending on U.S. goods accounted for 25% of U.S. exports, and U.S. exports amounted to 15% of U.S. GDP.
During the pandemic, the Asian economy's spending on U.S. goods accounted for 25% of U.S. exports, and U.S. exports amounted to 15% of U.S. GDP. Assume that the multiplier in the United States is 2 and that a recession due to the pandemic in Asia could reduce output and imports from the U.S. by 10% (relative to its normal level). What is the impact on the U.S. GDP of the Asian economic recession? Write down your answer in up to four decimal places by rounding it up, not in a percentage form
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