5 Refer to the World View to answer three questions.WORLD VIEWTrump Tariffs Shave U.S. GrowthDeclaring himself to be a "tariff man," President Trumpimposed a series of escalating tariffs on Chinese goods.The tariff war started in early 2018 with a 25 percent tariffon 818 Chinese products and morphed into 10-25 percenttariffs on virtually all Chinese exports in late 2019.Economists estimate that the tariffs increased U.S. pricesby 1 percent and shaved 0.25 percent off GDP growth in2019.Source: Media and research reports, December 2019.Please round your responses to the nearest whole number.If GDP grew by $800 billion in 2019.a. how much potential output was lost as a result of the Trump tariffs? $b. If a new house costs $250,000 to construct, how many houses could have been produced withthat potential output?billionc. If the U.S. population is $320 million, how much output and income growth would have beenrealized for the average person in 2019 without the tariffs? $d. Imports from China totaled $450 billion in $2019, and the average tariff was 20 percent, Howmuch tax revenue was raised? $billione. Assuming two thirds of the tariff on Chinese goods in (d) above was passed on to the U.S.consumer, and there were 120 million households in the U.S. in 2019, how much did the tariffscost the typical U.S household? $

a.) If GDP grew by $800 billion in 2019 potential output was lost as a result of the Trump tariffs…

a. how much potential output was lost as a result of the Trump tariffs? b. If a new house costs $250,000 to construct, how many houses could have been produced v that potential output? c. If the U.S. population is $320 million, how much output and income growth would have bee realized for the average person in 2019 without the tariffs? $

a. how much potential output was lost as a result of the Trump tariffs? b. If a new house costs $250,000 to construct, how many houses could have been produced v that potential output? c. If the U.S. population is $320 million, how much output and income growth would have bee realized for the average person in 2019 without the tariffs? $

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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