Overview
The Board of Directors would like you to undertake the following tasks:
- Using a diagram showing consumer and producer surplus, show generally how consumption taxes impact consumer and producer welfare. Remember to highlight the deadweight loss (DWL) to your audience.
- Using a demand and supply diagram, explain what a tax on imports (tariffs) would look like. Explain the difference between the DWL in question 1 and question 2.
- Explore how generative AI could affect inequality in the labour market. Consider two scenarios: one where generative AI reduces inequality and one where generative AI increases inequality. Use labour market diagrams to illustrate each scenario and explain the underlying mechanisms.
- Explore how generative AI could affect productivity and output in the economy. Consider two scenarios: one where generative AI boosts productivity and one where generative AI leaves productivity largely unchanged. Use an aggregate demand and aggregate supply diagram to illustrate each scenario and explain the underlying mechanisms.