1. Discuss one way in which government can promote economic activity and one government action that would harm long-term RGDP growth.
2. A large, economically developed country produces all goods and services more efficiently than a smaller developing country. Can both countries benefit from trade? Explain.
3. Should the national government ensure income equality through taxation and wealth redistribution?
4. Mexico and Canada are the largest trading partners of the US. USMCA trade agreement provides for relatively free trade. Should the Law of One Price prevail in major tradable consumer goods sold the three countries? What about services? Explain.
5. Venezuela has financed much of its government expenditures with an ever-increasing money supply ("printing money") and as also suffered from surging inflation. Use the equation of exchange to explain the cause and effect.
6. Can monetary and/or fiscal policy cause long-term growth?