Using the Taylor Rule. Suppose the real equilibrium interest rate is 2%, actual inflation is -2%, target inflation is 2%, and the output gap is 0.5%. What is the nominal interest rate?

Assume GDP is $2,400 billion, potential GDP is $2,600 billion, MPC = 0.75, and average income tax rate is 20%. By how much must government spending increase to close the output gap.

In the context of sustainable finance, how does blockchain technology create value?

Consider the Romer model. Y = (A LY)1-αKα with α=0.25, L=1000, LY=0.75L. =0.3 (0.25L)0.2A0.5 and = 0.4Y – 0.006K. In the steady state, the growth rate of labor is 1%.  What is the steady-state value of output per worker?

According to The Work of the Future. Building Better Jobs in an Age of Intelligent Machines, what does the phrase “two faces of technology” refer to?

According to the Heckscher–Ohlin model, if Foreign’s wage–rental ratio (w/r) rises after trade liberalization, which factor is Foreign most likely abundant in?

In the Classical model of a perfectly competitive labor market, what happens if labor demand decreases due to a negative productivity shock?

Efficiency Wage Theory implies that unemployment can persist because:

Inclusive Design (35 total points): Choose a product, service, or marketplace experience that might unintentionally exclude some consumers. Do not use the same focal examples discussed in class (for example, Herbal Essences, the Xbox Adaptive Controller, OXO, or Zappos). Instead, apply the framework to a new context. Using concepts from class, explain how the firm could improve the offering through inclusive design. In your response, be sure to do all of the following: Describe the context (3 points)Briefly identify the product, service, or experience you are analyzing. Identify the excluded consumer (6 points)Using the ADDRESSING framework, identify one consumer group that may be unintentionally excluded or underserved. Explain the mismatch (7 points)Describe the mismatch between the consumer’s needs and the current design, environment, or usage context. Classify the mismatch (5 points)Explain whether the mismatch is primarily sensory, cognitive, behavioral, or social, and justify your answer. Propose an inclusive design solution (8 points)Recommend one concrete redesign or improvement. Explain how it reflects designing with the extreme user in mind and how it improves the match between the consumer and the offering. Explain broader benefits (6 points)Discuss how this solution could also benefit other consumers and why it could be good for the firm.

Groups (35 points total): Choose a product, service, or marketplace context in which group membership is likely to shape consumer behavior. Using concepts from class, explain how groups influence consumer identity, preferences, and decisions, and then analyze the role of conformity in that context. In your response, be sure to: Identify the context you are analyzing (3 points) Explain how group membership shapes consumer behavior discussing at least two broader concept from class (such as social identity, belonging, reference groups, in-group favoritism, dissociative groups, or deindividuation) (8 points) Define conformity and distinguish between informational and normative influence (6 points) Apply these ideas to explain how the group affects what consumers choose, avoid, or prefer (7 points) Discuss one positive and one negative consequence of group influence in this context (6 points) Recommend one marketing action a firm could take based on these group processes and justify why it should work (5 points)