Asked by Joann Quigee on Jul 24, 2024
Verified
As a result of the 2007-2009 recession,
A) declining imports created a trade surplus for the United States.
B) the U.S. trade deficit grew significantly.
C) declining imports reduced the size of the U.S. trade deficit.
D) roughly equivalent declines in both exports and imports left the U.S. trade balance unchanged.
Recession
A significant decline in economic activity across the economy, lasting longer than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Trade Surplus
The amount by which a nation’s exports of goods (or goods and services) exceed its imports of goods (or goods and services).
Trade Deficit
A situation where a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in.
- Examine the ramifications of a nation's trade surplus and deficit on its economic prosperity.
- Absorb the underlying reasons and the impacts of extensive trade deficits, notably in the context of the United States and its trading companions.
Verified Answer
UA
Usama AnzalJul 27, 2024
Final Answer :
C
Explanation :
During the 2007-2009 recession, the decline in imports was a significant factor in reducing the size of the U.S. trade deficit. This occurred because the recession led to a decrease in domestic demand for foreign goods, thereby reducing the volume of imports.
Learning Objectives
- Examine the ramifications of a nation's trade surplus and deficit on its economic prosperity.
- Absorb the underlying reasons and the impacts of extensive trade deficits, notably in the context of the United States and its trading companions.