Please refer to the graph shown above. In 1930, the United S…
Please refer to the graph shown above. In 1930, the United States passed the Smoot-Hawley Tariff Act during the Great Depression, which raised tariffs on imported goods at an average of 60 percent. Foreign countries responded and retaliated with similar tariffs and world output tumbled. The effect of the decline in foreign production on the U.S. AD curve can be shown by a movement from:
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