The recent growth of the US energy sector has been staggering. In XXXXXXXXXX% of US energy was imported, but now the figure is approaching 30%. Two very different US policies proposed by the Trump...

The recent growth of the US energy sector has been staggering. In 2006 60% of US energy was imported, but now the figure is approaching 30%. Two very different US policies proposed by the Trump administration - an aggressive fiscal expansion and a releasing of energy exports from environmental controls - have very similar macroeconomic effects. This question is about the inter-relationships between these policies and any environmental policies remaining in place.

Q2. Using the Mundell-Fleming model of lecture 6 show the short run and long run impact of a US fiscal expansion (hint: you do not need to consider the inflationary impact - you can assume trade flows adjust before inflationary pressure emerges). Make sure you write out the national income identity with the long run effects underneath.

Q3. Using the Mundell-Fleming model of lecture 6 show the short run and long run impact of an autonomous increase in US energy exports due to the abandoning of many environmental regulations on energy exploration and exporting (hint: you do not need to consider the inflationary impact - you can assume trade flows adjust before inflationary pressure emerges). Make sure you write out the national income identity with the long run effects underneath.

Q4. Carefully compare the long run equilibria of Q2 and Q3. In each case, describe any crowding out that is occurring.

The recent growth of the US energy sector has been staggering. In 2006 60% of US energy was imported, but now the figure is approaching 30%. Two very different US policies proposed by the Trump administration - an aggressive fiscal expansion and a releasing of energy exports from environmental controls - have very similar macroeconomic effects. This question is about the inter-relationships between these policies and any environmental policies remaining in place. Q2. Using the Mundell-Fleming model of lecture 6 show the short run and long run impact of a US fiscal expansion (hint: you do not need to consider the inflationary impact - you can assume trade flows adjust before inflationary pressure emerges). Make sure you write out the national income identity with the long run effects underneath. Q3. Using the Mundell-Fleming model of lecture 6 show the short run and long run impact of an autonomous increase in US energy exports due to the abandoning of many environmental regulations on energy exploration and exporting (hint: you do not need to consider the inflationary impact - you can assume trade flows adjust before inflationary pressure emerges). Make sure you write out the national income identity with the long run effects underneath. Q4. Carefully compare the long run equilibria of Q2 and Q3. In each case, describe any crowding out that is occurring.