Chapter 9: 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, as evidenced by the historical data gathered from reputable sources and the analysis of the trends in this data. This means the value of imports has consistently been greater than the value of exports in the United States during this time period.

Step by step solution

Understanding the U.S. trade balance

A country's trade balance is the difference between the value of its exports and the value of its imports. A trade surplus occurs when the value of a country's exports is greater than the value of its imports, while a trade deficit occurs when the value of its imports is greater than the value of its exports. A balanced trade situation is when the value of exports is equal to the value of imports.

Gather historical data on the U.S. trade balance

To make a conclusion about the U.S. trade balance in recent decades, we will need to gather historical data on the trade balance. This data can be found from reputable sources such as the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, or international organizations like the World Bank or the International Monetary Fund.

Analyze the trends in the U.S. trade balance data

Upon gathering the historical data, we will observe the trends in the U.S. trade balance over recent decades. This will involve examining the data to determine whether the U.S. trade balance tends to lean towards a deficit, surplus, or balanced situation over time.

Draw conclusions from the analysis

Based on the trends observed in the historical data, we can draw a conclusion regarding the U.S. trade balance in recent decades. If the data consistently shows a trade deficit, surplus, or balanced trade, we can conclude accordingly.

Present the findings

After analyzing the historical data and drawing conclusions, we can present the findings on the U.S. trade balance in recent decades. This will involve clearly stating whether the U.S. trade balance has usually been in deficit, surplus, or balanced during this time period. In conclusion, after following the steps above, we would have a clear understanding of whether the U.S. trade balance in recent decades has usually been in deficit, surplus, or balanced.