Part 8, Technological Progress, Wages, and Unemployment 1. What are the causes of stagnating real wages in the US since the 1970s? What are different explanations? What is the 'skills myth'? What are counter arguments? Can you explain these dynamics using the WS and PS equations? 2. The causes of increasing wage inequality, competing explanations. 3. Discuss the relationship between labor unions and labor protections (and other labor market institutions and regulations) and unemployment rates in the US and Europe. 4. What explains high unemployment rates in Europe? Discuss different approaches. 5. Did globalization undermine American workers? Part 9, Ch 9: IS-LM-PC model 1. IS-LM-PC model, its derivation and implications. 2. The output gap and its derivation. 3. Differences between short run and medium run equilibriums. 4. Dynamics of the IS-LM-PC model, interactions between fiscal and monetary policies and Philips curve

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Olivier Blanchard, Macroeconomics, Prentice Hall, 8th, 2020

Howell, D.R 1994. The Skills Myth. The American Prospect, 5(18), 81-90. Bivens, J. 2017. Cutting corporate taxes will not boost American wages. October 25

Levy, F. 2007. The Failed Promise. Challenge November-December. Glyn, A., Howell, D. and Schmitt, J. 2006. Labor Market Reforms: The Evidence Does Not Tell the Orthodox Tale, Challenge 49(2), 5-22. Schmitt, J., Gould, E., and Bivens, J. 2018. America's slow-motion wage crisis. Four decades of slow and unequal growth. Reaction Paper Assignment 1: Watch: Intelligence2 Debates: Globalization has undermined America's working class. & Identifying the Policy Levers that Generated Wage Suppression in the US.