REQUIRED EXERCISE #13 Spring 2025 - Current Events: Tariffs

Are the tariffs expected to increase inflation in the U.S., or decrease it?

Tariffs on imported goods generally increase inflation in the U.S. because they raise the cost of those goods

Are tariffs expected to increase the growth of the U.S. economy, or decrease it?

Tariffs tend to decrease economic growth in the long run. While they may protect domestic industries in the short term, they can lead to retaliation from other countries, reducing U.S. exports.

What is GDP?

GDP (gross domestic product) is the total monetary value of all finished goods and services produced within a country in a given time period. It measures economic activity and is used to assess the overall health of an economy.

What is the traditional definition of a recession?

2 consecutive quarters of economic decline

What is an indicator of a recession?

A negative yield curve?