Asked by Priyadarshi Samal on Jul 16, 2024
Verified
During the period 2002-2009, U.S. trade deficits
A) increased from 2002 to 2006 and increased even faster in the recession of 2007-2009.
B) initially decreased, but then increased significantly in the recession of 2007-2009.
C) increased from 2002 to 2006, but then decreased in the recession of 2007-2009.
D) decreased throughout the entire decade.
U.S. Trade Deficits
The situation where the total value of goods and services imported by the United States exceeds the total value of goods and services it exports.
Recession
A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
- Investigate the reasons behind, and the outcomes of, major trade deficits in the United States.
Verified Answer
RL
Rhonda LittlesJul 18, 2024
Final Answer :
C
Explanation :
The U.S. trade deficits increased from 2002 to 2006 due to strong economic growth and higher imports. However, during the recession of 2007-2009, the trade deficits decreased as economic activity slowed down, reducing the demand for imports.
Learning Objectives
- Investigate the reasons behind, and the outcomes of, major trade deficits in the United States.