how much did the gnp drop from 1929 to 1932
Smoot–Hawley Tariff Act Peter Temin, explains a tariff is an expansionary policy (favourable to economic growth), like a devaluation as it diverts demand from foreign to home producers. He notes that exports were 7 percent of GNP in 1929, they fell by 1.5 percent of 1929 GNP in the next two years and the fall was offset by the increase in domestic demand from tariff. He concludes that contrary the popular argument, contractionary effect of the tariff was small. (Temin, P. 1989. Lessons from the Great Depression, MIT Press, Cambridge, Mass)[20]