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2Question1.539.5/120.4= 4.4808Therefore, correct to two decimal places will be $4.48.Question 2.Protectionist policies. These are policing that any government will put in place to restrict tradebetween people from within and those from outside.They help in controlling the imports andexports of a country.The US employed quotas and tariffs to control imports. Quotas is a policythat means that a country must limit the quantity to be imported. Tariffs are fixing tax chargesthat the government will fix on imports.This charge is set such that it discourages heavyimports. Fewer imports reflect a shortage in the market and a motivation to produce to fill themarket. The key aim of doing this was to balance imports and local goods.The US started to implement quotas because it needed revenue to run its federal government;another motive was industrializing their states. This worked for them since they managed tocreate a shortage, which led to the emergence of new industries and the growth of those inexistence, creating vacancies or joblessness. On the goal of raising their revenue, this wasachieved because tax collectable rose. For example, since the number of people who securedemployment in the developing industries increased, this implies that payee collectable raised,high charges ion import tax increased tax from the imports the emergence of new industries inthe market reflected on that increase in corporate collectable corporate tax.Question 3Imports and exports of a country will be determined by demand and supply. This means thatbefore country imports, it will consider their aggregate demand and adequate supply as well.
3Aggregate demand refers to national demand for goods and services, while aggregate supplyreferees the total supply of goods and services into their market. Demand refers to the total ofwhat he is willing and able to consume, while supply refers to what is people are able and willingto bring to that market at a given time. Different forces will cause a shift in the demand curveand a shift in the supply curve. The shift will be based on the type of force causing the shift. Forexample, if the force is positive, it will cause the demand curve to shift outward, and the negativecurve will cause the demand curve to shift inward.Shift in demand curve:Fig1fig 2Demand shifts from D1 to D2 in fig 1. This indicates that there is an increase in demand.Equilibrium quantity shifts. The equilibrium point shifts from E1 to E2, an upward shift quantitydemanded changes from Q1to Q2, and the equilibrium price will shift from P1 to P2.An inward shift is represented by: price changing from P1 to p2 and equilibrium quantitychanges from Q1 to Q2 In fig 2. Equilibrium price refers to the price that the market settles atthat satisfied both demand and supply. In contrast, equilibrium quantity refers to that quantitythat is both demand and supply.The equilibrium point is that both supplying the market and

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