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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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Perfectly competitive market

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A perfectly competitive market is a theoretical market structure in which a large number of buyers and sellers interact in such a way that no single buyer or seller has the power to influence the market price.  The key characteristics of a perfectly competitive market are: 1.Large number of buyers and sellers: There are numerous buyers and sellers in the market, with no single buyer or seller having a dominant market share. 2. Homogeneous products: All firms in the market produce identical products that are perfect substitutes for one another. 3. Free entry and exit: Firms can easily enter or exit the market without incurring any significant costs. 4. Perfect information: All market participants have access to complete information about the market, including prices, costs, and product quality. 5. Price takers: Each firm is a price taker and has no influence on the market price. The market price is determined solely by the forces of supply and demand. 6. Absence of externalities...
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