1. Suppose a foreign country imposes a tariff on our exported goods. a. Demonstrates what happens using the ADAS model. b. In the short run. The curve shifts to the The price level and output c. Demonstrate what happens in the long run using the ADAS model.

1. Suppose a foreign country imposes a tariff on our exported goods. a. Demonstrates what happens using the ADAS model. b. In the short run. The curve shifts to the The price level and output c. Demonstrate what happens in the long run using the ADAS model.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 9P

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Question

1. Suppose a foreign country imposes a tariff on our exported goods.
a. Demonstrates what happens using the ADAS model.
b. In the short run. The
curve shifts to the
The price level
and
output
c. Demonstrate what happens in the long run using the ADAS model.
d. In the short run. The
curve shifts to the
The price level
and
output
e. Now suppose the federal government and the Federal Reserve takes action to mitigate the effects of
spending and
the shift. The Government
taxes. The Federal Reserve
the money supply and
the federal funds rat
f. Demonstrate the effects of the policy.

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