Macro economy Q and A

It is expected that students be able to integrate appropriate economic theory, provide both in- and out-of-class examples which are both recent and relevant, and provide a persuasive argument. Unemployment is often a concern to policy makers, even if the measurement of this indicator is problematic. Explain why the measurement of unemployment is problematic and why we have different types of unemployment. Explain why unemployment, both in measurement terms and types, may differ between Classical and Keynesian economists. Under what conditions might governmental policy be useful in alleviating unemployment and can it alleviate all unemployment.

Explain how, in creating economic growth, the use of government credibility is necessary in affecting long-term economic growth. Be sure to appropriately define long-term economic growth as well as some of the cultural, economic, and political forces which might need to be addressed to encourage the development of an economy’s growth.

Explain how trading groups can both increase and decrease economic outcomes. Be sure to outline at least three economic indicators and how a trade agreement would affect the three indicators. How do would both Classical and Keynesian economists view trading agreements across nations?

Why do some monetary economists argue for transparent monetary policy-making rules, such as the Taylor Rule, while other monetary economists argue for a more opaque monetary-policy making system. Be sure to articulate each economic camp’s view towards the different styles of monetary-policy making systems as well as the short- and long-term implications of both.

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