Principles of Macroeconomics Final

Description

Note: Please answer all four questions. Points are in parenthesis. Most questions have no one correct answer, but keep in mind that this assignment focuses more on the technical analysis that

we’ve practiced during the class hours. Discuss the responses in detail about *all* possible models and channels of impact, as well as your assumptions you deem appropriate. Cite all sources, including the data, for each question. Submit your response in pdf format. Don’t forget to write your name and student ID number on the first page.

1. Pick one country that is not either the U.S. or Korea and see if the country has experienced any recessionary periods between 1990 and 2019 that are not directly related to the Global Financial Crisis, the European fiscal crisis, and the Asian Financial crisis. Describe the economic situation of the country before, during, and after the recessionary period. Also, discuss the causes behind such a sluggish economy and the monetary and fiscal policy responses by the government and the monetary authority. (40)

2. Read the two articles cited below. Identify the challenges of the traditional long-term growth model and propose a policy for sustainable economic growth that is NOT related to increasing

birth rate or immigration (i.e., a policy that accommodates the changing population structure). (25)

Cave, Damien, et al. “Long Slide Looms for World Population, With Sweeping Ramifications.” The New York Times, 24 May 2021,

www.nytimes.com/2021/05/22/world/global-populationshrinking.html?searchResultPosition=28.

Wang, Vivian. “Have Three Children? No Way, Many Chinese Say.” The New York Times, 1 June 2021, www.nytimes.com/2021/06/01/world/asia/china-threechild.html?referringSource=articleShare.

3. Read the below-cited article and evaluate the argument of both sides. Do you agree with the Biden Administration’s emphasis on full employment, and the central banks should prioritize

unemployment than the inflation? Why or why not? (25)

Levitz, Eric. “Letting the Economy Create Jobs for Everyone Is (Sadly)

Radical.” Intelligencer, 4 June 2021, https://nymag.com/intelligencer/2021/06/biden-fullemployment-policy-labor-shortage-inflation.html.

4. Go to Bank of Korea’s Economic Statistics System (http://ecos.bok.or.kr, available in English). Retrieve the quarterly data of inflation, base rate, and GDP growth rate between the 1st quarter of 2000 and the 4th quarter of 2019. Draw the graph (you can use the graph feature in the website) and discuss the trends. Do you see any interesting patterns? (10)

-I would like for the paper to incorporate as much knowledge dealt in the pdf files I’ve attached (These pdf files are the class materials) and explain the topics in depth by using outside sources

-This course only deals with macroeconomics. Topics related to microeconomics should not be included.

-I would like to see actual graphs (they can be hand drawn. Doesn’t have to be in good quality.) when explaining the different concepts for each question

-There weren’t any specific page limits required for each question but I want questions with more points (like the first question which is worth 40 points) to be dealt in more depth and with more importance than other questions that are worth less points (like the last question which is worth 10 points)

-You can go over the page limit

-Number of sources are not decided. It can go over 15 sources or be less than 15 sources.

-I want a lot of detail when explaining.

-no summaries of articles are needed for questions which need to analyze articles from the prompt. Just mention the information that you need to use to analyze the article or to answer the prompt question