3. “A wider commitment to enforce "Buy American" laws”, would it count as positive economics or normative economics? Explain. To address the immediate impact of the coronavirus crisis,Mr Biden has vowed to spend "whatever it takes" toextend loans to small businesses and increase directmoney payments to families. Among the proposals are anadditional $200 in Social Security payments per month,rescinding Trump-era tax cuts and $10,000 of student loanforgiveness for federal loans.Mr Biden's broader economic policies, dubbed his "BuildBack Better" plan, aim to please two constituencies thattraditionally support Democrats - young people and bluecollar workers.He supports raising the federal minimum wage to $15(£11.50) an hour- a measure that is popular among youngpeople and that has become something of a totem figurefor the party in 2020, and a sign of its move to the left. Healso wants a $2tn investment in green energy, arguing thatboosting green manufacturing helps working class unionworkers, who perform most of those jobs.There is also a $400bn pledge to use federal dollars tobuy American goods, alongside a wider commitment toenforce "Buy American" laws for new transport projects.Mr Biden was previously criticised for backing the NorthAmerican Free Trade Agreement (Nafta), which critics sayshipped jobs overseas.His 2020 plan calls for the federal govermment to invest$300bn in US-made materials, services, research andtechnology.Source: https://www.bbc.com/news/election-u5-2020-53575474Here additional source:https://buildbackbetter.com/priorities economic-recoveryQuestions1. Which of Mr. Biden proposals are likely to impactaggerate demand (AD)? Give one example for each:what will increase AD and decrease AD. Explain how!why. [Hint: aggregate demand is composed ofspending: C, I, G, and (X-M)]2. Which of Mr. Biden proposals focus on impactingaggerate supply? Give one example and explain howit will impact AS. [Hint: think AS in terms of USAeconomic output (RGDP))3. "A wider commitment to enforce "Buy Americanlaws", would it count as positive economics ornormative economics? Explain.4. "He also wants a $2tn investment in green energy."What would be the full impact of this investment onRGDP? Most likely, will it be less than, equal to, ormore than $2tn? Explain.

Joe Biden has ensured a future with " Made in all America" by American workers by strengthening…

Answered: 3. “A wider commitment to enforce "Buy…

3. “A wider commitment to enforce "Buy American" laws”, would it count as positive economics or normative economics? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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