Macroeconomics

 

Choose one of the discussion questions below to focus on for your discussion contribution.

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Once you have completed your initial post (2-3 paragraphs), read and respond to the posts of at least 2 of your peers.

Your initial post and your peer responses should be substantial and original. Clearly cite any outside sources incorporated in to your original thoughts using MLA. For questions, reference the MLA guidelines.

Discussion questions:

Efficiency wage theory argues that workers’ productivity depends on their pay, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate. Do you think this theory generally holds true, with better pay motivating higher productivity? Or do workers feel complacent and higher wages don’t pay off for the firm in terms of higher productivity?

Read the “Clear It Up” section on page 208 carefully. Also, research levels of unemployment insurance benefits in the remaining U.S. states not covered in the Table 8.5., and how other countries handle unemployment insurance. Given the levels of benefits mentioned in Table 8.5, do you think unemployment insurance has an effect on the length of job searches in the U.S.? How about other countries?

The International Monetary Fund’s estimate for inflation in Venezuela in 2019 is 10 million percent (that is really 10,000,000%) – clearly a good example of hyperinflation. What problems does this cause at a microeconomic level (focus on individual households/businesses)? What problems does this cause at a macroeconomic level (focus on economy-wide issues)?

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