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? 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. 5. Okun's Law, the Phillips curve, the IS relation (make sure you know their economic meanings as well functional representations).

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