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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Ayden

Business

23 July, 16:04

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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Ellen Perkins · Answer 1

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.