1.Briefly explain the difference between “structural stagnation” and “secular stagnation.” What are the root causes of “stagnation” in both hypotheses?
2. What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for macro policy? Explain. What are the adjustments are required to mitigate structural stagnation?
3. How does technological change (such as robotics) potentially impact economic growth, employment, and secular stagnation?
4. Globalization has pulled hundreds of millions of people out of poverty in China and India. How should that gain be weighed against the structural changes that globalization requires in the United States? Should there be a “safety net” for those most hurt by globalization and technological change? What kind of “safety net”? Who should pay for it? Explain.
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