Economic Issues Class Session IV

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Economic IssuesClass Session IV

• Micro Price Controls
• Macro Government Promises

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Papers

• If you emailed me your paper, then you should
  have received a graded paper via email
• Comments
• NO WIKIPEDIA!!!!!
• Spend less time on detailing the theory and more
  time on applying the theory
• I want to see an application, not whether you can
  regurgitate the theory

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Papers

• Try to avoid the I will This paper will when
  providing your thesis.
• Always avoid in repetition.
• You do not need to quote (or reference) generally
  accepted theories.
• Do you provide references or quote the law of
  gravity?
• Proofread your paper 24 hours after writing it
• Proofread for grammar (too many mistakes)
• Proofread for clarity

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Papers cont.

• 1st little Paper can be re-written BUT
• You will not receive many points if you only
  correct the items I point out.
• You must provide the original graded paper with
  your rewrite.
• The paper should be flawless in writing and the
  application should be obviously improved.

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Old Business

• Drugs Vietnam
• No statistical difference in drug usage between
  Vietnam Vets and non-Vets
• Re-exportation in China
• 80 of US imports from China travel via
  intermediaries (census bureau)
• Organized crime in Chine? --Yes
• Things changed in 1978 when 'Deng Xiao Ping'.
  came to power and implemented his reforms.
• Dengs reforms shifted China from a planned
  economy to a market economy
• Paper posted on WebCT

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Minimum Wage The Real Effect

• What really happens when price controls are
  enacted
• Reading Highlights (oil prices)
• Needed Theory Supply Demand Analysis

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Supply Demand (student oil article) (instr
uctor oil article)
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Supply Demand
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Price Floors
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Price Ceilings
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Macro Govt Promises

• Analyzing promises and policies of Congress
• Needed theory
• AD/AS

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AD/AS Model
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AD/AS Model
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AD/AS Model
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AD/AS Model
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AD/AS Model
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AD/AS Model

• Expansion
• No intervention
• Pro
• Con
• Intervention
• Pro
• Con

• Recession
• No intervention
• Pro
• Con
• Intervention
• Pro
• Con

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Intervention Options

• Fiscal policy
• Monetary policy (later class session)

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AD/AS Model w/ Fiscal Intervention (inflation
chart)
Example FDRs New Deal (1933-1937)
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AD/AS Model w/ Fiscal Intervention
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AD/AS Model w/ Fiscal Intervention