Macroeconomic policy is about making difficult decisions
involving tradeoffs. It is impossible to talk about ‘the best
policy. Why ?
(350 words) No written responses please, only typed.
In 300 words or less please talk about In the book CPE( cocktail
party economics) , the authors talk about the difficulty facing
governments of solving equity problems without negatively affecting
efficiency. Specifically they look at inheritance taxes. Find
another example that illustrates this point. Point out the
efficiency and the equity implications.