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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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Production function

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A production function is a mathematical relationship that describes the relationship between inputs (such as labor, capital, and technology) and outputs (such as goods and services) in a production process. There are several types of production functions, including the following: Linear Production Function : A linear production function assumes that the output is directly proportional to the input. For example, if one worker can produce 10 units of a product per day, then two workers can produce 20 units per day. Cobb-Douglas Production Function: A Cobb-Douglas production function assumes that the output is a function of the inputs raised to some exponents. This production function is commonly used in economics to model production processes. The general form of the function is Y = A * K^a * L^b, where Y is output, A is a constant, K is capital, L is labor, and a and b are the output elasticities of capital and labor, respectively. Leontief Production Function: A Leontief production f...
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