What are the short-run economic effects when u.s. firms substitute labor outside of the u.s. for labor inside the u.s.?

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12-12-2017
Business

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What are the short-run economic effects when u.s. firms substitute labor outside of the u.s. for labor inside the u.s.?

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W0lf93 W0lf93 · Answer 1 · 2017-12-23T16:40:35+01:00

W0lf93 W0lf93

23-12-2017

There will be a rise in employment and drop in the unemployment rate. It will be ideal for the US economy as the economy is driven on consumerism. More people with jobs means more spending. This will improve the GDP forecast and overall strengthen the broader economy.

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