International trade and finance
- Some macroeconomists believe that Long-Run Aggregate Supply (LRAS) is perfectly inelastic.
- Explain why they would believe so in 3-4 sentences.
- If LRAS is perfectly inelastic, what are the implications for monetary policy? Explain in 2-3 sentences.
- If LRAS is perfectly inelastic, what are the implications for countries considering fixed exchange rates?
- On foreign aid to developing countries:
- What are the circumstances under which foreign aid can help a developing country? Explain your answer in 3-4 sentences.
- How can foreign aid harm a developing country? Explain in 3-4 sentences.
- What are the problems with sending money as foreign aid? Explain in 2-3 sentences.
- What are the problems with sending goods as foreign aid? Explain in 2-3 sentences.
- On international economic development:
- What do you believe is the key to international economic development, i.e. what is the root cause of sustainable economic growth in poor countries? (2-3 sentences)
- What do you believe are the necessary conditions for growth, i.e. what conditions MUST already exist for growth to occur? (2-3 sentences)
- How can the U.S. government best promote economic growth in the developing world? (3-4 sentences)
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