Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 10: Problem 24

In recent decades, has the U.S. trade balance usually been in deficit, surplus, or balanced?

Short Answer

Expert verified
In recent decades, the U.S. trade balance has usually been in deficit, meaning the value of imports has been higher than the value of exports.

Step by step solution

01

Understand Trade Balance

Trade balance is the difference between the value of a country's exports and the value of its imports. A trade surplus occurs when the value of a country's exports is greater than that of its imports, while a trade deficit occurs when the value of imports is greater than that of exports.
02

Research U.S. Trade Balance Trends

To determine the status of the U.S. trade balance in recent decades, we can refer to historical data and trends from reliable sources such as the U.S. Bureau of Economic Analysis or World Bank.
03

Analyze the Data

After reviewing the historical data, we can see that the U.S. trade balance has mostly been in deficit in recent decades, with a few exceptions in the early 90s. This indicates that the U.S. has been importing more goods and services than it has been exporting.
04

Conclusion

In recent decades, the U.S. trade balance has usually been in deficit, which means the value of imports has been higher than the value of exports.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

A government official announces a new policy. The country wishes to eliminate its trade deficit, but will strongly encourage financial investment from foreign firms. Explain why such a statement is contradictory.

Explain the relationship between a current account deficit or surplus and the flow of funds.

Using the national savings and investment identity, explain how each of the following changes (ceteris paribus) will increase or decrease the trade balance: a. A lower domestic savings rate b. The government changes from running a budget surplus to running a budget deficit c. The rate of domestic investment surges

Some economists warn that the persistent trade deficits and a negative current account balance that the United States has run will be a problem in the long run. Do you agree or not? Explain your answer.

Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is occurring in an economy that performs poorly. What key factor or factors are making the difference in the outcome that results from a trade surplus?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free