. If the US were to engage in a trade war with Canada, Mexico, and China by levying substantial tariffs on their exports to the US,
a. What would you expect to be the effects on output and the exchange rate. Show your answer using the IS-LM framework.
b. How would your answer change, if the 3 countries above retaliate by placing tariffs on the US in a similar fashion. Again, show your answer using the IS-LM framework.