ECO119

Questions: 1. a. What will happen to the US NIIRU (aka NAIRU or un) if President Trump, by putting “America First,” imposes tariffs on many goods from many countries? Be sure to explain what this “shock” is; use the un equation to check.  b. Use the extended IS-LM model linked to the PC graph to examine the SR and MR effects of this “deglobalization” shock. Assume the US starts at the full MR eqm and that pe t  = p  t-1.  Describe what happens to

22 Other / Other Lehigh University / ECO119 18 Nov 2020