1. Economic Theory and Policy: Examine the trade-off between inflation and unemployment, considering the Phillips curve and the
1. Economic Theory and Policy:
Examine the trade-off between inflation and unemployment, considering the Phillips curve and the expectations-augmented Phillips curve. Discuss the implications of this trade-off for policymakers and evaluate the challenges of maintaining price stability and full employment simultaneously.
2. Game Theory and Market Structure:
Apply game theory to analyze strategic interactions among oligopolistic firms. Explore the concept of Nash equilibrium and discuss the potential outcomes in terms of pricing, output, and market behavior in industries characterized by a small number of dominant firms.
3. International Trade and Development:
Evaluate the impact of globalization on income inequality within and between countries. Discuss the role of international trade, foreign direct investment, and technological advancements in shaping income distribution and development outcomes, providing empirical examples.
4. Behavioral Economics and Decision-Making:
Examine the limitations of rational choice theory in explaining economic decisions. Discuss the key insights from behavioral economics and how cognitive biases, heuristics, and social factors influence individual and collective economic choices. Provide real-world examples to illustrate your points.
5. Macroeconomic Policy Challenges:
Assess the challenges and policy options for addressing a persistent current account deficit and high public debt in an economy. Discuss the potential consequences of different policy approaches, considering their implications for exchange rates, interest rates, and overall economic stability.
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