U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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Elastic and inelastic demand

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Elastic and inelastic demand are two concepts used in economics to describe the responsiveness of demand for a product or service to changes in its price.


Elastic demand refers to a situation where the quantity demanded of a product or service changes significantly in response to a change in its price. In other words, when the price of the product or service goes up, the quantity demanded falls significantly, and when the price goes down, the quantity demanded increases significantly. Elastic demand is characterized by a relatively flat demand curve. Examples of products with elastic demand include luxury goods, vacations, and restaurant meals.

Inelastic demand, on the other hand, refers to a situation where the quantity demanded of a product or service changes relatively little in response to a change in its price. In other words, when the price of the product or service goes up, the quantity demanded falls only slightly, and when the price goes down, the quantity demanded increases only slightly. Inelastic demand is characterized by a relatively steep demand curve. Examples of products with inelastic demand include gasoline, cigarettes, and medication.



Elastic demand:
  1. Quantity demanded changes significantly in response to a change in price.
  2. Demand curve is relatively flat.
  3. Examples of products with elastic demand include luxury goods, vacations, and restaurant meals.
  4. Businesses can increase revenue by reducing the price of a product with elastic demand.

Inelastic demand:
  1. Quantity demanded changes relatively little in response to a change in price.
  2. Demand curve is relatively steep.
  3. Examples of products with inelastic demand include gasoline, cigarettes, and medication.
  4. Businesses may not be able to increase revenue by reducing the price of a product with inelastic demand.

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