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1.In 1930, the United States passed the Smoot-Hawley Tariff Act, which raised tariffs on imported goods an average of 60 percent. Other countries retaliated with
1.In 1930, the United States passed the Smoot-Hawley Tariff Act, which raised tariffs on imported goods an average of 60 percent. Other countries retaliated with similar tariffs and world output declined. The effect of the decline in foreign output on the U.S. Aggregate Demand curve can be shown by a movement from:
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