The country of Borduria has vibrant automobile and white goods industries. Consequently, it is a large importer of steel. The country is currently showing inflation at 8% and unemployment at 5%. The current tariff (tax) on steel imports is 30% and the government of Borduria decides to lower the tariff on steel imports to 10%. You are the Commerce Minister of Borduria. Write a letter to the Prime Minister (PM) of Borduria explaining that you have decided to lower the import tariffs on steel in an effort to control inflationary tendencies. Start your explanation to the PM with a Phillips curve showing the initial position and then using the short-run AD/AS framework, show what might happen and why as a result of this policy. Explain all steps (no economics shorthand) and then show what the Phillips curve might look like after the reduction in the tariff. Show both starting and ending positions of the PC in the same diagram. The final positions/values of the unemployment and inflation rates can be chosen by you but make sure they are reasonable and make sense (PLEASE DRAW THE DIAGRAM)

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter9: Taxation Of International Transactions
Section: Chapter Questions
Problem 27P
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I need do fast typing clear urjent no chatgpt used i will give 5 upvotes pls full explain with diagram
The country of Borduria has vibrant automobile and
white goods industries.
Consequently, it is a large importer of steel. The country
is currently showing inflation at 8%
and unemployment at 5%. The current tariff (tax) on
steel imports is 30% and the
government of Borduria decides to lower the tariff on
steel imports to 10%. You are the
Commerce Minister of Borduria. Write a letter to the
Prime Minister (PM) of Borduria
explaining that you have decided to lower the import
tariffs on steel in an effort to control
inflationary tendencies. Start your explanation to the
PM with a Phillips curve showing the
initial position and then using the short-run AD/AS
framework, show what might happen
and why as a result of this policy. Explain all steps (no
economics shorthand) and then show
what the Phillips curve might look like after the
reduction in the tariff. Show both starting
and ending positions of the PC in the same diagram.
The final positions/values of the
unemployment and inflation rates can be chosen by
you but make sure they are reasonable
and make sense (PLEASE DRAW THE DIAGRAM)
Transcribed Image Text:The country of Borduria has vibrant automobile and white goods industries. Consequently, it is a large importer of steel. The country is currently showing inflation at 8% and unemployment at 5%. The current tariff (tax) on steel imports is 30% and the government of Borduria decides to lower the tariff on steel imports to 10%. You are the Commerce Minister of Borduria. Write a letter to the Prime Minister (PM) of Borduria explaining that you have decided to lower the import tariffs on steel in an effort to control inflationary tendencies. Start your explanation to the PM with a Phillips curve showing the initial position and then using the short-run AD/AS framework, show what might happen and why as a result of this policy. Explain all steps (no economics shorthand) and then show what the Phillips curve might look like after the reduction in the tariff. Show both starting and ending positions of the PC in the same diagram. The final positions/values of the unemployment and inflation rates can be chosen by you but make sure they are reasonable and make sense (PLEASE DRAW THE DIAGRAM)
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