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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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tariffs and import quotas are discussed in great detail in this solution.

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