Effects on the same variables in the long run

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Q1. Morocco has a flexible exchange rate regime. The demand for domestic goods and services is too strong. As a result, inflation is 9%, which is above the desired rate of 5%. What alternative policy actions could Jordan implement to bring the rate down? How will these actions affect the following macroeconomic variables in the short run: Price, output, and unemployment? What are the possible effects on the same variables in the long run?

Q2. The World Economic Forum (2014) report lists UAE's ranking in twelve distinct categories that define a country's ability to compete internationally. For each of these categories, give two UAE-specific examples to justify the high or low ranking assigned to the UAE. Explain your choices.

Q3: In January 1999, the European Union adopted a common currency, the euro, marking a significant step in a long process of economic and political unification that started in the 1950s. Why and how did Europe adopt a common currency? What are the lessons learned - positive and negative - from the euro experience? How relevant are these lessons to the UAE and other GCC countries in their quest for a common currency?

Q4: The labor market in the UAE (and other GCC countries) faces important challenges related to the need to strike a balance between efficiency considerations (increasing the productivity of jobs and workers) and equity considerations (ensuring decent work for Emirati nationals). Outline the proposed solutions to theses major challenges and present how (or whether) they indeed present an efficiency-equity trade-off.

Reference no: EM13789557

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