$2.$ A change in the level of imports will impact the macroeconomy. Here we will model an decrease in imports, holding all else constant, using the AD$-$AS and look at how monetary policy can try and smooth out the business cycle. Our shock in this question will be: imports decrease, holding all else constant.

Let$$s start with assuming the US was producing at the full$-$employment level of output $($Yp$)$ with an arbitrary price level $($P$)$ before the increase in imports.