.) Discuss the role of imperfect match between labor supply and labor demand as possible

explanation for unemployment. Define the concept of frictional unemployment.

b.) Why an excessive unionization might be a problem for an economy to recover from an high unemployment rate ? Discuss.

c.) Define money multiplier. Discuss the logic underlying money multiplier in the mone- tary transmission mechanism.

d.) Discuss the meaning of absolute and relative convergence within the context of Growth Theory.

e.) Discuss the concept of permanent income and the life cycle hypothesis. Why those theories can be better reconciled with empirical evidence on consumption ?