All else equal, the Morrill tariff act of 1861 caused the short-run price level to increase and short run employment to increase.
Morrill Tariff Act introduced an increased import tariff in the United States in 1861 during the US President James Buchanan, a democratic to protect infant industries. The tariff rates were increased to both compensate for a federal deficit that had led to increased government debt in recent years and to promote domestic industry and foster high wages for industrial workers. Hence, the act caused the short run price level to increase, hence consequently resulted in short run employment to increase.
