Using the аrticle frоm the New Yоrk Times titled "As U.S. Tаriffs Becоme Reаlity, Canadians Prepare for Economic Pain" citation: Austen, I., & Isai, V. (2025). As U.S. Tariffs Become Reality, Canadians Prepare for Economic Pain. New York Times Company. https://ezproxy.bellevuecollege.edu/login?url=https://www.proquest.com/newspapers/as-u-s-tariffs-become-reality-canadians-prepare/docview/3174197475/se-2?accountid=35840 write an essay between 450 and 600 words. Your essay should include at least three different well-explained macroeconomic concepts* and address the following question: Canada is currently facing economic anxiety and is challenged with it export-dependent economy likely to head into a recession as a result of the Trump administration's tariffs. Examine how current U.S. policy is affecting the Canadian economy and what policy options Canada's government and/or central bank has to respond to this external shock. In your essay, you will want to consider: a) Canada's economic relationship with the United States b) Macroeconomic concepts to show the inter-relationship between trade, output, growth, exchange rates, inflation and unemployment c) How Canada can use economic policies to ensure that they are able to move towards their goals of employment, price stability and economic growth. Suggested terminology includes GDP (along with its components), unemployment, output gap, consumption, savings taxes, budget position, monetary policy, fiscal policy, trade and currency changes as well as the algebraic relationship between the components of AD. Criteria: Show understanding of theory and application by using the article for illustrative purposes. Define all economic terms you use in your essay. It is better to define your terms directly in your essay. State your assumptions clearly and explain every cause/effect Incorporate as much economic analysis as you can to show your understanding. Refer to the article(s) by including (Economist) after your reference. Same with the textbook. (McConnell) is sufficient. A clever title adds value, especially if it give me an idea of what your essay will focus on Do not summarize the article but it is important to give examples from the article Excerpt from the article follows: _______________________________________________________________________________________________________________ "WINDSOR, Ontario — The trucks that carry about $300 million worth of auto parts each day over the bridge from Windsor, Ontario, to Detroit are still rolling as usual. But in the aftermath of President Donald Trump’s decision to impose 25% tariffs on most categories of Canadian exports, the mood in Windsor, like all of Canada, was transformed. Trump’s move has ignited a sense of economic anxiety and anger among Canadians about how they are being treated by their neighbor, ally and best customer. Most are still puzzling over Trump’s motivations and objectives for the tariffs, as well as his comments about annexing Canada as the 51st state. And as they turned their attention to getting the potentially crippling tariffs, and a 10% levy on Canadian oil and gas and some minerals, lifted, politicians, business people and ordinary Canadians say that the relationship between the two countries will never return to what it once was. Flavio Volpe, the head of a Canadian auto-parts maker trade group, said his members could start shutting down factories in days, and that he feels betrayed by the United States. “We’ve built two societies on the same values,” said Volpe, who is also a member of Prime Minister Justin Trudeau’s Council on Canada-U.S. Relations. “The man in the White House did a U-turn and drove right over us.” Trudeau and anxious business leaders throughout Canada said their country’s focus must be on ending the tariffs as quickly as possible. Most forecasts project that Canada’s export-dependent economy will be sent into a recession, although they differ on its timing and initial severity. “We have a limited experience for this magnitude of a trade shock,” the Royal Bank of Canada, the country’s largest financial institution, said this week. Some Canadians reached back for comparison to the Smoot-Hawley tariffs of 1930, which raised the average U.S. import duty to a staggering 59.1%. Many economists believe that they worsened the Great Depression, but the two countries’ economies were far less integrated at that time. Aside from oil and gas, Canada’s largest export sector is the auto industry. On Tuesday, Trump suggested that the only way out of tariffs for the sector is to move all of its production to the United States. Aside from abandoning a skilled workforce, that would require billions of dollars in new investments. Historically, automotive trade has been largely balanced between the United States and Canada. Parts often swirl around between Canada, the United States and Mexico, sometimes crossing borders repeatedly before winding up in vehicles in a dealer’s showroom. Volpe said that, aside from the tariffs, trade remained unchanged Tuesday, an assessment backed up by the usual migration of trucks to the Ambassador Bridge. The 25% tariffs are being paid by the importers, either other parts makers or automakers." *note this is not the complete article but enough to give you context for writing your essay