How would this affect the aggregate supply curve

Assignment Help Business Economics

Reference no: EM131385525

President-elect Trump would like to increase de barriers higher tariffs or by (through renegotiating trade deals which have had led to lower barriers to trade) in order to keep more jobs in the U.S. Assume input costs (wages) are higher in the U.S. than abroad.

a. How would this affect the aggregate supply curve? Would it shift to the left or to the right? Explain.

b. What would happen to the price level and output in the U.S. economy?

c. Assuming the AS curve shifts in the direction predicted in part (a), what would happen to the unemployment level in the U.S.? Sould it increase or decrease?

d. who would be helped by this policy? Who would be hurt?

Reference no: EM131385525

Questions Cloud

Government conducts balanced-budget increase : The graph above shows the AD/LRAS/SRAS functions for a country. In the short run wages and prices are sticky due to contracts, but they fully adjust to market conditions in the long run. The government conducts a balanced-budget increase in its purch..

Which arguments do you find more persuasive : The year 2014 closed with the unemployment rate just below 6 percent, real GDP growing at roughly 2.5 percent, inflation below 2 percent, and the federal budget showing a deficit under 3 percent of GDP. Which arguments do you find more persuasive?

Briefly define contract-warrant theory of product liabilty : Briefly define the contract-warrant theory of product liability. What are the two obstacles facing the contract-warrant theory of product liability, according to Page Keeton?

Fed increases the supply of money : In general, if the Fed increases the supply of money by 5%, which of the following statements can we claim to be true with certainty?

How would this affect the aggregate supply curve : President-elect Trump would like to increase de barriers higher tariffs or by (through renegotiating trade deals which have had led to lower barriers to trade) in order to keep more jobs in the U.S. Assume input costs (wages) are higher in the U.S. t..

Explain what the federal funds rate : The FOMC is scheduled to meet on December 13-14 and it is anticipated that they will raise the federal funds rate. Explain what the federal funds rate is. Current inflation is less than the Fed's 2% goal. Does a lower interest rate help the Fed achie..

What would the market price for used cars be : There are 1,000 individuals in the city of Lincoln wishing to sell their used cars. The value of a car, V, ranges between $0 and $3000. The distribution of values is such that the number of used cars is worth less than $V is V/3. The true value of th..

Labor market from the two point views of supply and demand : What are the 2 different approaches to the presentation of a job offer? What are the advantages and disadvantages of each? Discuss the labor market from the two point views of supply and demand. What are the key areas that should be included in a job..

Who would be hurt by unanticipated inflation : The fact that millions of jobs are created and destroyed every year is a sign of. The full employment in the economy is considered to be achieved when. Who would be hurt by unanticipated inflation?

User Account

All Pages