P9

5. Okun's Law, the Phillips curve, the IS relation (make sure you know their economic meanings as well functional representations). 6. Fiscal contraction/expansion in the IS-LM-PC model, short run vs. medium run. 7. Effects of changes in mark up rates. 8. Disinflation and its costs 9. Quantity theory, Monetarist approach and inflation. Monetary neutrality. Part 10: Wages, Growth and Inequality 1. What are the general trends in income inequality in the US? 2. What explains increasing income inequality in the US? What are the causes? 3. How does power and institutions affect inequality? 4. What are the effects of income inequality? 5. What are some of the proposed solutions to reduce income inequality? 6. What is neoliberalism? What are its basic characteristics? What kind of economic policies are advocated by neoliberals? How does neoliberalism approach the question of inequality? 7. What are the basic tenets and assumptions of Neoclassical economics? What are its main axioms? 8. What are the major implications and limitations of Neoclassical economics? 9. Have the costs of Covid-19 pandemic distributed equally across people?

(briefly answer it)

Olivier Blanchard, Macroeconomics, Prentice Hall, 8th, 2020 Leonhardt, D. 2016. The American Dream, Quantified at Last, New York Times, December 8. Also listen to: https://www.npr.org/2016/12/09/505012132/economists-chart-index-of-the- american-dream-in-the-new-york-times Mishel, L. and Kandra, J. 2020. Wages for the top 1% skyrocketed 160% since 1979 while the share of wages for the bottom 90% shrunk. EPI, December 1. Ruccio, D. 2020. The United States of Inequality. Real-World Economics Review 92. Baker, D. 2020. Fixing Capitalism: Stopping Inequality at Its Source. Real-World Economics Review 92. Rodrik, D. (2017). The fatal flaw of neoliberalism: it's bad economics, The Guardian, Nov 14. *Stiglitz, J. 2011. Of the 1%, By the 1%, For the 1%. Vanity Fair, May. Reaction Paper Assignment 2: Watch Intelligence2 Debates: It's time to redistribute the wealth. Optional Reaction Paper Assignment: Watch: The Inside Job (by Charles Ferguson)