Over the last several decades, the United States has usually had a trade deficit.
When the U.S. 2008 recession began, the trade deficit increased.
When net exports increase, GDP increases.
Trade deficit is when the import of an economy is greater than the export of the economy. Import are goods that are bought from foreign countries. Export are goods that are sold to foreign countries. As at August 2021, trade deficit in the United States was $73.3 billion. This is higher than the forecasted amount of $70.5 billion.
During the 2008 recession, trade deficit increased by 3% to $920.7 billion. One of the reasons for this was the increase in the price of crude oil which is a major consistent of import of the United States.
GDP calculated using the expenditure approach is : consumption + government spending + business spending + net export.
Net export = export - import.
If net export increases, GDP increases.
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The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages: development, introduction, growth, maturity, and decline. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages.
Answer:
The correct answer is the letter C. by showing that if total spending in the economy grows faster than total production, prices will rise
Explanation:
The dynamic aggregate supply and demand model explains inflation as follows: In the short run, an economy's production capacity is limited to existing factors of production, ie there is little room to increase the amount of capital and thus the supply of goods and services. Thus, if aggregate demand, that is, the economy's consumption capacity grows faster than production capacity, that is, to supply goods and services, there will be demand inflation, which happens when aggregate consumption pressures aggregate supply, raising price levels.
If the Fed conducts an open-market sale, bank reserves decrease, and the money supply is likely to decrease.
<h3>Open market operations</h3>
The Federal Reserve (the Fed) uses "open market operations" (OMO) to refer to the process of buying and selling U.S. Treasury securities as well as other securities on the open market in order to manage the amount of cash kept in reserve by U.S. banks. The Fed purchases and sells Treasury securities in order to increase the quantity of money in circulation and to decrease long-term interest rates.
The U.S. Federal Reserve uses open market operations to control the amount of money in circulation by buying and selling bonds and other securities. The Fed can utilize these transactions to increase or reduce the amount of money in the banking system and to raise or lower short-term interest rates, depending on the objectives of its monetary policy.
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