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French Tariffs on Automobiles

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The Effect of French Tariffs on Automobile Imports Specific Example : Since 2019, France has imposed an average tariff of nearly 4% on all automobile imports. Virtually all tariffs on imports in France (and in most of the EU) operate on the ad valorem basis Prior to the implementation of this tariff, the quantity of cars consumed in France was Q2 at a price of Pw. The world supply curve was then shifted upwards by the amount of the tariff (S world +tariff). This shift caused market price to rise to Pw +T, thereby leading total quantity demanded to fall from Q2 to Q4.  Impact on Domestic (French) Producers of Cars:  Domestic producers will increase production to Q3 which will cause their revenue to increase from just g to g+a+b+c+h. Since import prices are artificially inflated by the tariff, domestic industries benefit from a reduction in competition. While tariffs may be viewed in a positive  light in terms of their ability to "protect" domestic  producers, the lack...
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Fiscal Policy

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*Eek - this is over 250 words..* Example 1: On March 12, 2020, French President Emmanuel Macaron announced tax relief measures for French businesses affected by the surging Covid-19 pandemic. This expansionary fiscal policy protected companies by allowing them to defer the payment of taxes ( corporate income tax, monthly social security contributions, as well as value added tax and taxes on wages)  due in March of 2020 without formalities or penalties. C ompanies suffering at the most extreme level could also benefit from the postponement  of social installments, tax installments, and even tax rebates. However, since there were only a limited amount of tax rebates available, they had to be issued on a case-by-case basis. This proved to be a challenge since the requirements to apply for this benefit were rather vague ("companies threatened with disappearance").  Those in favor of this policy would have been the stakeholders whose companies were experiencing negative ...
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Changes in AS/LARS

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Real GDP per hour worked (2015 USD $) https://data.oecd.org/lprdty/gdp-per-hour-worked.htm   Real GDP per person employed (2017 USD $) https://data.worldbank.org/indicator/SL.GDP.PCAP.EM.KD?end=2019&locations=FR&start=2010   * It is important to note that, while the trend lines on the first two graphs are incredibly similar, they are not exactly equal because workers may be shorter shifts, but producing the same output (or longer shifts, and producing output). In either of these situations there is an increase/decrease in GDP per hours worked, but not GDP per person employed.  Unemployment Rate (% of total workforce) https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?end=2020&locations=FR&start=2010   Employment Statistics "50.5% of economically active 25- to 64-year-olds in France were employed in science and technology and/or were tertiary education graduates, which is higher than the EU-28 average of 46%." " The number of private-sector researcher...
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Exercise 13.2

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 Real GDP (2010-2019) --- Current US$ https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2019&locations=FR&start=2010&view=chart     Real GDP per capita (2010-2019) --- Current US$ https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2019&locations=FR&start=2010   Real GDP Growth (2010-2019) --- (annual %) https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2019&locations=FR&start=2010   Unemployment Rate (2010-2019) --- (% of total labor force) https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?end=2019&locations=FR&start=2010   Inflation Rate in Consumer Prices (2010-2019) --- (% annual) https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?end=2019&locations=FR&start=2009    Current Account Balance (2009-2019) --- (Current US$) https://data.worldbank.org/indicator/BN.CAB.XOKA.CD?end=2019&locations=FR&start=2010   Hidden Economy (2005-2015) --- (% of GDP) https://www.thegloba...
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