When another country's economy falls, it can affect another country's economy due to investing in less exports. In this case by Japan's economy falling and less investment is being made from purchasing goods and services from the United States, this is causing the aggregate demand curve to shift to the left. The short-run impact will cause the Real GDP and Price Level to decrease as the aggregate demand takes into consideration consumption, investment, government spending, and net exports. Due to the decrease in investment from Japan into the United States' economy, I anticipate this will cause the U.S. consumption expenditure and U.S. employment rates to also decrease. If the U.S. is not receiving an investment from Japan for certain goods and services as before, and the price level decreases, this will cause a decrease in income. If people are not making as much income, they will not spend as much or stop spending altogether. Thus, due to a decrease in demand and lower income, production will need to slow or stop depending on the severity of the demand impact, causing employers to have to let go of their employees as they are no longer needed