Rapidly growing strong economies often experience trade deficits, whereas economies with sluggish growth often have trade surpluses.

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Rapidly growing strong economies often experience trade deficits, whereas economies with sluggish growth often have trade surpluses. Can you explain this puzzle?

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Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 08, 2023 01:19 AM

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Rapidly growing strong economies often experience trade deficits, whereas economies with sluggish growth often have trade surpluses.

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The observation that rapidly growing strong economies often experience trade deficits whereas economies with sluggish growth often have trade surpluses can be explained by several economic factors and ...View the full answer

Macroeconomics Private And Public Choice

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