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Higher earnings and higher productivity

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Question 1. The government observes that young workers acquire debt and proposes reducing this debt obligation by allowing the workers to defer their current tax obligations (with interest) for up to ten years. What is the likely impact of this policy?

Question 2. The government also observes that married workers have higher earnings and higher productivity. To boost growth, the government proposes subsidizing marriage. Is this sound policy making?

Question 3. Suppose you are asked to use the neoclassical growth model to evaluate the impact of rising unemployment rates for young workers on economic performance. Discuss the conceptual merits of adopting this approach for this analysis. (Briefly discuss the general principles. You do not need to provide a detailed description of the neoclassical growth model.)

Reference no: EM133302207

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