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Question Description

1.

Unemployment and Inflation

Two of the biggest issues inmacroeconomics are inflation and unemployment. Policymakers would liketo keep both of these measures low. Often, however, there is a tradeoffbetween the two. A strong economy that lowers unemployment can putupward pressure on prices. A weak economy that lowers inflation canincrease unemployment.

We currently have the benefit of both verylow unemployment and inflation. But things could change and it’s goodto have policy plans in place before either of these problems gets toobad.

Imagine that you are in charge of macroeconomic policy. Answer these questions, being sure to explain your answers.

What are some of the problems, difficulties, or hardships caused by unemployment?
What are some of the problems, difficulties, or hardships caused by inflation?
If you had to make a choice today between a policy that would headoff increases in inflation or increases in unemployment, which one wouldyou choose?

2.

Exploring Tax Cuts, Jobs, and Tax Revenue

There has been discussion about whetherthe Tax Cuts and Jobs Act that took effect in 2018 will increase taxrevenue. Tax revenue can be thought of an as average tax rate multipliedby taxable income. If the average tax rate falls while taxable incomestays the same, tax revenue will fall. But what if the tax cuts increasetaxable income? Both of the major schools of thought in macroeconomics (Keynesians and Neoclassicals)believe that tax cuts increase economic growth. Economic growthincreases taxable income. Our recent economic growth has broughtunemployment down to historically low levels.

Think about this. Reply to these questions to begin your discussion:

Do you think that the tax cuts of the Tax Cuts and Jobs Act willincrease economic growth and taxable income so much that tax revenuewill increase?
Or do you think that the tax cuts will reduce tax revenue? Explain your answers.

3.

Business Strategy

Organizations have to develop an international Human ResourcesManagement Strategy, when they expand globally. Which do you think ismore critical for international Human Resource Management:

Understanding the cultural environment, or
Understanding the political and legal environment?

4.

Performance Appraisal System

Managers are oftentimes overwhelmed with their day-to-day activities

and postpone important aspects of their jobs, including performance

appraisals. What is the purpose of performance appraisals within an

organization? Do you think performance appraisals are effective? Give a

reason for your position. What components should be included in a

performance appraisal?

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