Economists argue on the broad impact of trade deficits on employment. Some argue for the connotation that imports necessarily reduce employment at home while others point to offsetting job growth in other sectors through the same trade ties.
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There is no clear link between trade deficits and economic growth because even if a country has a strong trade surplus does not equate to strong economic growth, take for example Japan and Germany.
Trade Deficits happen when the value of a country's imports exceeds the value of its exports. The imports and exports include goods, physical products, and services.
It's not inherently good or bad but trade deficits can actually be a sign of a strong economy and under certain conditions could lead to stronger economic growth for the deficit-running country in the future.
The current pandemic has led to an economic free fall which is unparalleled in history. In the US alone, the unemployment rate plummeted at such a speed that more than 10 million have claimed unemployment insurance in a matter of three weeks.
With over 30 percent of the U.S. population expected to be unemployed by this summer, and the GDP shrinking at a faster rate that the Great Depression of the 1930s, the current situation is uncharted territory, even for the experts.
Cost-push inflation is the decrease in the aggregate supple of goods and services stemming from an increase in the cost of production.
An increase in the costs of raw materials or labor can contribute to cost-pull inflation.
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