NOTE: THOROUGHLY EXPLAIN, ANALYSE, AND DRAW/ILLUSTRATE DIAGRAMS WHERE NECESSARY. Thank you !!

Qtn 1: The labour market in the United States using WS/PS model

Critically evaluate the following factors at play here in the WS/PS model when reading the following analyses (listed in chronological order) and relevant data source:

unions, worker bargaining power, productivity:

1. Isidore, Chris (2023) 'Unions are the strongest in decades. Nearly a million Americans got double-digit raises as a result', CNN Business, November 21st, available: https://edition.cnn.com/2023/11/21/business/big-paydays-union-members/index.html

2. Kreidler, Mark (2023) 'Are Unions About to Reverse 40 Years of Decline?' Capital & Main, December 15th, available: https://capitalandmain.com/are-unions-about-to-reverse-40-years-of-decline

3. Goldberg, Natalie Rose (2024) 'Labor unions, with power and popularity rising, are still trailing in the biggest nationwide battle', CNBC, January 31st, available: https://www.cnbc.com/2024/01/28/unions-with-power-popularity-rising-are-still-losing-a-big-battle.html

4. Poydock, Margaret and Jennifer Sherer (2024) 'Major strike activity increased by 280% in 2023', Economic Policy Institute, February 21st, available: https://www.epi.org/publication/major-strike-activity-in-2023/

5. Purdue, Luke (2024) 'In Brief: The Recent Rise in US Labor Productivity', ASPEN Economic Strategy Group, April 25th, available: https://www.economicstrategygroup.org/publication/in-brief-us-labor-productivity/

data:

6. Civilian unemployment rate in the US: https://www.bls.gov/charts/employment-situation/civilian-unemployment-rate.htm

In this context, use WS/PS model to illustrate and explain what has happened to the US economy post pandemic from January 2021 to January 2024. [400 or so words should be sufficient for Q2] (Please draw and explain the well-labelled diagram as per question requirement) Thank you!

Qtn 2: Fiscal policy in Argentina using the multiplier AD model

The austerity measures undertaken by Argentina's president Javier Milei are some of the largest seen in history, as pointed out in these articles (listed in chronological order):

1. Rey, Dbora (2024) 'Milei's first 100 days: Argentines struggle to make ends meet as support for president remains high', Associated Press, March 22nd, available https://apnews.com/article/milei-100-days-argentina-poverty-inflation 6011d71963b4203accbfadb4044cd43e

2. Hernndez, Leandro (2024) 'Will Milei be able to avert disaster? Financiers and economists collide in their forecasts for Argentina', EL PAS, April 20th, available: https://english.elpais.com/economy-and-business/2024-04-20/will-milei-be-able-to-avert-disaster financiers-and-economists-collide-in-their-forecasts-for-argentina.html

3. Nessi, Hernan (2024) 'Argentina economic activity seen plunging 6% in February', Reuters, April 22nd, available: https://www.reuters.com/markets/argentina-economic-activity-seen-plunging-6-february-2024-04-22/

4. Centenera, Mar (2024) 'Argentina gripped by one of the largest protests in 20 years: 'Public education is an inalienable right'', EL PAS, April 24th, available: https://english.elpais.com/international/2024-04-24/argentina-gripped-by-one-of-the-largest-protests-in-20 years-public-education-is-an-inalienable-right.html

5. Debre, Isabel (2024a) 'With public universities under threat, massive protests against austerity shake Argentina', Associated Press, April 24th, available: https://apnews.com/article/argentina-milei-libertarian-economic-overhaul-austerity-university-public 35f1c1df7826fb8be935c9acfdc6cce2

6. Debre, Isabel (2024b) 'This fiery economist became Argentina's president railing against politicians. Now he's wooing them', Associated Press, May 1st, available: https://apnews.com/article/argentina-milei-libertarian-congress-legislative-protest-unions-economy c50129872e4987b7a1e936ba83f5e7a1

Use the multiplier AD model diagram to illustrate and explain in detail what is expected to happen to the economy as Milei shrinks the role of government and attempts to "exterminate [high] inflation". In your diagram, begin the Argentinian economy in 2023, and explain how the multiplier process would pan out by the end of 2024 (assume a marginal propensity to consume (MPC) of 0.8). [400 or so words should be sufficient for Q1] (Please draw and explain the well-labelled diagram as per question requirement) Thank you !