Question

Current Event on Comparative Advantage 1-2 pages

Please post/use citations

Current Event 1-Comparative Advantage The Current Events must be based on the economic topics discussed within the Module (comparative advantage). See the rubric for specific points and require- ments. Your Current Event should include 5 terms. Terms should be used accurately within the text of your paper. To receive full points, terms must be highlighted, used appro- priately within the narrative, and not provided in a list of terms simply to get them in the paper. The Current Event should follow an APA format and include the following head- ings: Introduction & Summary of Article o Introduce the article name and economic topic. (2-4 sentences) o Summarize the article. Provide at least four supporting details from the article. Include APA in text citations. (2 paragraphs) Problem o Discussion: What is the problem that you will solve? Identify an economic problem. o The problem can be directly from the article, or it can be inferred if there is no discussion of a problem (ex. If your article is on raising the mini- mum wage, you might infer that the problem is a low standard of living). Not all articles will have an overt problem. If you are having trouble find- ing an economic problem then consider if you can infer one or consider another article. o Graphical Analysis (Image and 1 paragraph) today acting irrationally by not building. Understand their in- centives today are not leading them to build, and so your so- lution should provide those incentives to act. o Graphical Analysis (Image and 1 paragraph) Show the change implied by the student's solution. - Give a clear concise and accurate description of the change that oc- curs on the model. Discuss the concepts that define the model if a change is not applicable. Unintended Consequences o Discuss the consequences that might occur with your solution. Are there groups of people who might be hurt or helped not indicated in your pre- vious discussion? Why is your solution still the best course of action de- spite the possibility of a negative outcome? (1 paragraph) o Note: The unintended consequence is directly related to the implementa- tion of your solution (it is not consequences of the initial problem). If your solution is implemented, who may be harmed? Remember, re- sources are scarce. If your solution proposes more resources for one group, by extension another group will receive less! o Note: There are always possible unintended consequences. Recommended length: 1-2 pages. Each current event MUST cover the correct material and be submitted to the cor- rect link for grading. These act as your 'tests' over the material. Each Current Event must include a model discussed in class.

Answer 1

Article link: https://economictimes.indiatimes.com/news/economy/indicators/why-political-pressures- make-for-bad-policy-in-india/articleshow/66115820.cms By Mihir Sharma Tandon, Updated 8th October 2018. Title: Why political pressures make for bad policy in India. In this article it is clearly explained how Indian central bank is stuck in between its ogbjectives of maintaining stable inflation through interest rates and also to check significant currency fluctuation against US dollar. This article also explains how capital from Indian markets is going abroad. This will make Indian businesses worse off and if companies lose net worth then unemployment may increase. Generally, inflation is a universal phenomenon and it happens due ro increase in Aggregate demand, When it shifts from AD1 to AD2 then, price levels go up and total output also increases. This helps to generate more jobs. If this inflation goes out of limits like more than 4-5 % then central bank interevenes by increasing interest rates in an economy. This also helps foreign investmemt to stay as higher returns are offered to them. However, in this case Dollar is appreciating and crude oil is becoming more expensive fr India, but Indian central bank has got a mandate to look after infation first and then at currency fluctuations

AS AD9 AP3