As a result of the trade war, the US increases its trade barriers. a. How would only this development affect the IS curve? b. Now assume that other countries response by increasing their trade barriers. Explain how would these developments affect the IS curve?

As a result of the trade war, the US increases its trade barriers. a. How would only this development affect the IS curve? b. Now assume that other countries response by increasing their trade barriers. Explain how would these developments affect the IS curve?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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