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tariffs and import quotas

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#14 You have just been elected president of the united states, and the present chairperson of the federal reserve board has resigned. You need to appoint a new Counncil of Economic Advisers. Using Table 36.1 and your knowledge of macroeconomics, identify the views on macro theory and policy you would want your appointees to hold. Remember, the economic health of the entire nation- andyour chances for reelection- may depend on your selections. (see atttached chart 36.1)

#8 "The potentially valid arguments for tariff protection are also the most easily abused". What are those arguments? Why are theysusceptible to abuse? Evaluatee the use artificial trade barriers, such as tariffs and import quotas, as a means of achievind and maintaining full employment.

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Please explain in detail to help me understand the subject being covered

#14 You have just been elected president of the united states, and the present chairperson of the federal reserve board has resigned. You need to appoint a new Counncil of Economic Advisers. Using Table 36.1 and your knowledge of macroeconomics, identify the views on macro theory and policy you would want your appointees to hold. Remember, the economic health of the entire nation- andyour chances for reelection- may depend on your selections. (see atttached chart 36.1)
The chart figure 36.2 shows that a decline in resource availability shifts the nation's long-term aggregate supply curve to the left. There is a decline in real output and this reduces the money demand and money supply. The aggregate demand shifts leftward. Even though the price level remains constant, there is a recession.
My appointees on the Federal Reserve must hold the view that the FED can stimulate aggregate demand in the short run. This they must believe because a large proportion of prices in the economy are fixed in the short run and the firms will produce the quantity of goods and services that are demanded. This is based on Keynesian economics. I require them to hold this view so that they can take measures to stimulate the economy by increasing the supply of money.
The purpose of increasing the supply of money is to encourage spending by the households and businesses. If low cost credit is available to the ...

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Chp 8

17. Suppose Americans can buy any number of birdcages on the world market at a price P0. American manufacturers have an upward sloping supply curve that intersects the American demand curve at a price above P0.

a. At what price must American birdcages sell? Illustrate the gains to Americans from the existence of the birdcage market.
b. Suppose the government imposes a quota, by which only Q0 birdcages per year can be imported from abroad, were Q0 is less than the number currently being imported. Show that there is only one price consistent with Americans being willing to import exactly Q0 birdcages per year, and explain why the price will rise to that level.
c. Who wins and who loses as a result of the quota? Use a graph to illustrate the deadweight loss.
d. Is the quota better or worse for Americans than a tariff that reduces the quantity of imported birdcages to Q0?

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