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The chart below represents the initial equilibrium of the US aggregate market. Suppose The chart below represents the initial equilibrium of the US aggregate market.

The chart below represents the initial equilibrium of the US aggregate market. Suppose The chart below represents the initial equilibrium of the US aggregate market. Suppose
a US trade partner, Canada, suffers a recession. Describe the short-run impact of
Canada's recession on the US economy. If you were a US president, name one fiscal
policy you'd introduce to help mitigate any negative impact of the Canada's recession
on the US economy. Describe and draw what happens to the US economy after your
fiscal policy is enacted & find the long-run equilibrium. Assume all shocks are
unanticipated, and other things are constant.
Market of All Goods and Services, US
a US trade partner, Canada, suffers a recession. Describe the short-run impact of
Canada's recession on the US economy. If you were a US president, name one fiscal
policy you'd introduce to help mitigate any negative impact of the Canada's recession
on the US economy. Describe and draw what happens to the US economy after your
fiscal policy is enacted & find the long-run equilibrium. Assume all shocks are
unanticipated, and other things are constant.
Market of All Goods and Services, US
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