代做Open Economy Macroeconomics Summer 2024 Take-Home Final Exam代写Web开发

日期：2024-07-29 04:42

Open Economy Macroeconomics

Summer 2024

Take-Home Final Exam

Please answer ALL the parts of the following FOUR questions in a comprehensive way. Support your answers by providing any relevant evidence and research, using data and readings cited in class or in the reading list. If requested, please sketch the theoretical or analytical framework that you are using to answer the question. This exam is due at midnight on Sunday August 4^th.

1. The rising U.S. current account balance deficit over the last 20 years has been an indicator that many politicians and observers have worried about, blaming foreign countries –such as China—for causing it. But some macroeconomists argue that it is the relatively low U.S. national savings rate that explains the sustained U.S. current account balance deficit during this period. Conceptually and analytically: why would comparatively low national savings rates be associated with a current account balance deficit? Do you believe that low U.S. savings rates explain the country’s current account balance deficits since the early 2000s and up to the present? Why or why not?

2.  U.S. Presidential candidate, former President Donald Trump, has stated that he will impose “universal baseline tariffs on most foreign products” if elected. He argues such a policy will provide a big boost to the American economy. According to the Mundell-Fleming macroeconomic model discussed in class, would this policy –a tariff on all U.S. imports—have a positive impact on the U.S. economy? Please describe the Mundell-Fleming model (presenting its analytical framework) and state the short-run and long-run impact of the tariff policy using the framework, including the effects on U.S. income, domestic interest rates, capital flows between the U.S. and the rest of the world, the value of the dollar, and the value of U.S. exports and imports.

3. U.S. inflation rose significantly after the COVID pandemic, increasing from less than 2% in 2019 to 8% in 2022. Jason Furman, an economist at the JFK School of Government at Harvard, stated in April 2022 that “this Inflation Is Demand-Driven and Persistent.” Do you agree or disagree with this statement? Why or why not? Please present data and research in support of your answer. Describe the macroeconomic framework that you use to answer this question.

4. Our analysis at the end of the course focused on the long-run economic growth of an economy. Please specify four factors that are positively related to long-run economic growth, and how each factor affects the long-run growth of income per-capita of a country, presenting evidence and research on the significance of each of these factors.