Country: United States of America

Kindly write answer for each question

1: Is the trade balance sensitive to changes in foreign prices for imports and exports?

2: Estimate which quadrant of the SWAN diagram your country of choice may be operating in?

3: What might that predict about the role for policymakers?

4: What drives the RER - is it changes in the price of Non tradeables or the nominal exchange rate?

5: What does the RER suggest about the countiries competitiveness?