short discussions



Unemployment and Inflation

Two of the biggest issues in
macroeconomics are inflation and unemployment. Policymakers would like
to keep both of these measures low. Often, however, there is a tradeoff
between the two. A strong economy that lowers unemployment can put
upward pressure on prices. A weak economy that lowers inflation can
increase unemployment.

We currently have the benefit of both very
low unemployment and inflation. But things could change and it’s good
to have policy plans in place before either of these problems gets too

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 head
    off increases in inflation or increases in unemployment, which one would
    you choose?


Exploring Tax Cuts, Jobs, and Tax Revenue

There has been discussion about whether
the Tax Cuts and Jobs Act that took effect in 2018 will increase tax
revenue. Tax revenue can be thought of an as average tax rate multiplied
by taxable income. If the average tax rate falls while taxable income
stays the same, tax revenue will fall. But what if the tax cuts increase
taxable income? Both of the major schools of thought in macroeconomics (Keynesians and Neoclassicals)
believe that tax cuts increase economic growth. Economic growth
increases taxable income. Our recent economic growth has brought
unemployment 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 will
    increase economic growth and taxable income so much that tax revenue
    will increase?
  • Or do you think that the tax cuts will reduce tax revenue? Explain your answers.


Business Strategy

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

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


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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