The U.S. conducts a great deal of trade with western European countries. Suppose western European countries...

 

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The U.S. conducts a great deal of trade with western European countries. Suppose western European countries suffer a severe recession. How would the European recession affect the general price level, real GDP and employment in the U.S. in the short run? In the long run? Explain in words and a graph. The U.S. conducts a great deal of trade with western European countries. Suppose western European countries suffer a severe recession. How would the European recession affect the general price level, real GDP and employment in the U.S. in the short run? In the long run? Explain in words and a graph.