Russia’s Economy Is Starting To Come Undone

In 2022, Russia’s exports decreased, and many Western countries banned exports to Russia. Young people going to the front or leaving the country to avoid the draft shrank the labor force. Uncertainty curbed business investment. Retail sales fell 6.7%. Government revenues decreased. GDP fell 2.1% and inflation was over 10%.—wsj.com

Answer the following questions to check your understanding of the story.

According to the news clip, why did Russia’s aggregate demand shrink in 2022?

Russia’s aggregate demand shrank because _____________.

What happened to Russia’s short-run aggregate supply in 2022?

Russia’s short-run aggregate supply ______________.

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