Trump’s Economical Policies Assignments | Online Homework Help

Trump has consistently pursued policies aimed at stimulating the economy. On the regulatory side, his administration has worked to reduce regulation on corporations and banks. On the fiscal side, the president supported and signed the tax cut act of 2017 reducing personal and corporate income taxes (among other things). And on the monetary policy side, he has actively criticized the central bank’s ”tight” monetary policy approach and called on the Federal reverse to reverse course, which it did in 2019.1 Additionally, he has picked Cain and Moore, who both support lowering interest rates, for the current Federal Reserve Board openings. In this question you will consider the pros and cons of some of these policies through the lens of the models you have learned this semester. He has also been a strong proponent of renegotiating trade deals that are more fair for the United States and has engaged with a tit for tat tariff dispute with China.professional writing services near me

Don't use plagiarized sources. Get Your Assignment on
Trump’s Economical Policies Assignments | Online Homework Help
Just from $13/Page
Order Now

1. The reduction in taxes changes the incentives for firms to invest and workers to work.

a. How does the reduction in income taxes change the incentive to work?

b. Use a simple supply and demand model (like on page 30 of chapter 15 slides) to show the effects of the tax cut on quantity of labor employed.

c. How should this effect output (think about in terms of chapter 12 concepts)?

d. The reduction in corporate taxes raises the after tax return on capital, which in turn increases investment. How should this affect output in the future?

2. Let us now turn to the short run model, to study the effects of the tax cuts. Use the AD/AS model and the Phillips Curve to answer these questions.

a. How will the reduction in income taxes affect consumer spending?

b. Use the AS/AD model to show the short run effects of the reduction in income taxes.

c. What will happen to the output gap and inflation in the short run?

d. What will happen to the output gap and inflation in the long run?

e. Now add in the drop in corporate taxes leading to more investment demand. What happens to the output gap and inflation?

3. Next we turn to the effects of the President’s efforts to reduce interest rates on the economy.

a. To keep inflation stable, how should the Federal reserve respond (in terms of the real interest rate) to the drop in taxes?

b. Show the effects of this response in the AS/AD diagram and on the Phillips Curve.

c. Now assume, due to executive pressure and new appointments to the board, the central bank instead cuts interest rates. Show the effects of this response in the AS/AD diagram and on the Phillips Curve.

d. What is the effect of executive pressure to lower interest rates on the economy?

4. Next, let us turn to the long run effects of increasing the deficit.

a. Use the model of the market for loanable funds to explain what will happen to investment.

b. How will this affect output in the future?

c. In the long run the government must run a balanced budget. What do tax cuts today imply for future government services and taxes?

5. Let us now combine all of the effects together.

a. According to our models, what should be the net effects of the president’s policies in the short run and in the long run. Summarize and combine your answers from the previous four parts.

b. Write approximately a paragraph discussing whether you think the President’s policies are good for the economy. There is no right answer as that will depend on your value judgments of the various costs and benefits, but should be a rational argument. In answering this question, you may also bring in other things that are not covered by out models (for example inequality).

6. Next, let us turn to the President’s efforts to reduce the trade deficit with China.

a. Assume the U.S. imposes tariffs on Chinese textile goods. Use the concepts of consumer surplus and producer surplus to show that tariffs will reduce net welfare in the US.

b. Who will be the winners and losers in the US from higher textile import tariffs?

c. Now assume, China retaliates by imposing tariffs on US cars. How will this affect U.S. welfare? Who wins? Who losses?

d. Now apply the ideas from the previous three sub-parts to the broader U.S. – China trade policy under the current president. Who does it benefit? Who does it hurt? Does it increase the welfare of the average person?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
Customer 459947, April 6th, 2022
Excellent work. Had a few issues but tutor stayed in contact and produced a succinct and quality paper.
Customer 453939, April 26th, 2020
Public Administration
Customer 453751, June 28th, 2020
Thank you very much
Customer 452763, December 6th, 2021
community health
Thank you!!!
Customer 463301, September 1st, 2022
English 101
Order was late
Customer 462805, April 4th, 2022
Customer 453413, February 27th, 2020
Satisfactory work.
Customer 456821, April 14th, 2022
Healthcare & Medical
Good work
Customer 463469, October 22nd, 2022
Great services
Customer 463473, November 10th, 2022
Excellent work!
Customer 463337, March 7th, 2023
English 101
I don’t have any comment it’s very good
Customer 454499, June 17th, 2020
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat