Balance of trade and balance of payments are both ways of measuring the impact of global trade on a country’s economy. What differentiates the two measures is that balance of trade is ________ and balance of payments is ________.

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Economic Trends

An economic trend is the long-term direction of an economy. The trend can go up, down, or sideways. An upward trend means the economy is growing and wages are rising. A downward trend means the economy is shrinking and unemployment is increasing. A sideways trend means the economy is neither growing nor shrinking.