Consider the following definition of ETHNOCENTRISM, which expands on the definition in our readings:

Watch the following TED Talk and answer the following questions:

The danger of a single story, by Novelist Chimamanda Adichie (July 2009).

1- What does the novelist, Chimamanda Ngozi Adichie, say about: Power, Voice, (Identity) Labels?

2- In what ways can “rejecting the single story” help break stereotypes?

3- How has her experience with the single story affected her understanding of her own biases and of the biases of others?

4- Consider the following definition of ETHNOCENTRISM, which expands on the definition in our readings:

“Ethnocentrism is the attitude whereby an individual views the world from the point of view of their own culture. There are two variations of ethnocentrism: (1) the assumption that what is true for your own culture is true for other cultures and (2) the belief in the superiority of your own culture in comparison with other cultures.” (Angelini, 2012, p. 112)

How can this definition of ethnocentrism help shed light on the dominant groups acceptance of the single story?

Is rape an act of sex or aggression?

Make the discussions 500 words minimum

Psych discussion.

Is rape an act of sex or aggression?

There appears to be no single motivation for rape; rapists seem to have different motivations and personalities.

Some researchers feel that sociocultural factors can encourage rape and violence against women

https://youtu.be/LWctQH4C0P8What is sexual violence?

Please write an immediate description of a person that comes to mind when the following words are read: (1) impotent man, (2) lesbian, (3) flasher, (4) frigid woman, (5) AIDS victim.

Do you think a male would show stronger negative reactions than female? Discuss why this might be so (males are expected to be sexually dominant; women are socialized to be more nurturing).

Also – do you think your responses might have been different if DSM-5 language had been used, such as erectile dysfunction or exhibitionist. Do you think changes in names would effectively prevent stereotypic attitudes and discriminatory behavior?

Case study

Do topic on paraphilic disorder

Make sure to reference dsm 5 in the diagnosis section and cite sources in apa. Please format like the example below!

Case study rubric

Please see information below of grading criteria for each case study:

INTRODUCTION&CONCLUSION: 10 points

Introduction of the case study creates interest, contains detail, and clearly states a good history, with symptoms.

Conclusion effectively summarizes issues/topics addressed related to the history, symptoms and management, diagnosis and treatment.

MAIN POINTS: 20 points

Well-developed main points directly related to history/diagnosis being addressed.

Supporting information is concrete and detailed with referencing included within the paper.

ORGANIZATION&WRITING STYLE: 20 points

Logical progression of ideas. . Writing is clear and sentences have varied structure. Good word choice and proper usage of words

MECHANICS: Grammar, punctuation, spelling, and capitalization are generally correct. 20 points

Original – pertaining to Chapter readings . 10 points

APA Format and referencing. REFERENCE USING APA: American Psychological Association (APA) style of referencing. SEE APA INFORMATION ON COURSE BOARD. 20 points

TOTAL POINTS = 100

Example of case study (please make case study similar to this one)

Panic disorder

S.B is a 18 year old freshman in college. And was brought to the er after experiencing SOB, chest pain, rapid heart rate, and nausea. She came in worried she was having a heart attack. Upon further questioning she stated she was really stressed about classes but has been worse the last week due to finals and that she has multiple episodes of chest pain, nausea, rapid heart rate, and SOB since moving to college. She stated she becomes very worried during episode and that they last about 20 to 30 minutes with the worst of the symptoms being after 5 minutes. She stated she has become more isolated and has a drop in academic performance. She also stated she is constantly worried about having an episode. She said she came in to the er because this episode was more severe. An ekg was done to R/O a heart attack but has a normal sinus rythme. She does not take and medications and declines substance use. TSH, and T3&T4 where unremarkable and she has no evidence of a respiratory condition. pt’s mother had recently passed from a stroke. pt was physically abused by her biological father up until she was 7 years old.

Diagnosis

Panic attack criteria:

A discrete period of intense fear or discomfort, in which four or more of the following symptoms developed abruptly and reached a peak within 10 minutes

Palpitations, pounding heart, or accelerated heart rate

Sweating

Trembling or shaking

Sensations of shortness of breath or smothering

Feeling of choking

Chest pain or discomfort

Nausea or abdominal distress

Feeling dizzy, unsteady, lightheaded, or faint

Derealization (feelings of unreality) or depersonalization (being detached from oneself)

Fear of losing control or “going crazy”

Fear of dying

Paresthesias (numbness or tingling sensation)

Chills or hot sensations

Panic disorder Criteria:

Both:

Recurrent and unexpected panic attacks (see below)

≥1 attack has been followed by 1 month or more of 1 or both of the following

Persistent concern about additional attacks or their consequences

A significant maladaptive change in behavior related to the attack

The panic attacks are not due to the direct physiological effects of a substance (e.g., a drug of abuse or a medication) or a general medical condition

The panic attacks are not better accounted for by another mental disorder.

(ncbi, n.d.)

pt meets criteria for panic attacks due to accelerated heart rate, SOB, nausea, chest pain and a high sense of worry. She also meet criteria peak of her symptoms is about 5 minutes in. Panic attacks and panic disorder.

S.B. Meet the criteria for panic disorder due to the frequent panic attacks and her worry about getting one. She also meets criteria because of the drop in academic performance and becoming more isolated. Her disturbance is not better explained by another disturbance. Symptoms are also not caused by any medical conditions such as hyperthyroidism, respiratory conditions, heart conditions, or substance use.

The stress of college as well as the move might have contributed to the development of symptoms. Her mother passing and being physically abused as a child. Genetics can play role in the development of panic disorder but she has no known family hx. (Mayo clinic 2018, May 04)

Treatment

I am sending a referral for psychotherapy as well as cognitive behavioral therapy. I am prescribing 10mg paroxetine to be taken PO and may increase by 10mg not to exceed 50mg for long term treatment and .25mg alprazolam not to exceed 4 doses a day for short term treatment. (Drugs.com, n.d)Prognoses seems good with medication and psychotherapy.

Side effects of paroxetine include:

* vision changes

* weakness, drowsiness, dizziness, tiredness

* sweating, anxiety, shaking

* sleep problems

* loss of appetite, nausea, vomiting, diarrhea, constipation

* dry mouth, yawning

* infection

* headache

* decreased sex drive, abnormal ejaculation, or difficulty having an orgasm.

Side effects of alprazolam include:

* weak or shallow breathing

* a light-headed feeling, like you might pass out;

* seizures

* hallucinations, risk-taking behavior

* increased energy, decreased need for sleep

* racing thoughts, being agitated or talkative;

* double vision

* Jaundice

Substance Abuse and Mental Health Services Administration. (n.d.). Table 3.10, Panic Disorder and Agoraphobia Criteria Changes from DSM-IV to DSM-5 – Impact of the DSM-IV to DSM-5 Changes on the National Survey on Drug Use and Health – NCBI Bookshelf. Retrieved from https://www.ncbi.nlm.nih.gov/books/NBK519704/table/ch3.t10/

Panic attacks and panic disorder. (2018, May 04). Retrieved from https://www.mayoclinic.org/diseases-conditions/panic-attacks/diagnosis-treatment/drc-20376027

Alprazolam: Uses, Dosage, Side Effects. (n.d.). Retrieved from https://www.drugs.com/alprazolam.htm

Paroxetine Uses, Dosage & Side Effects. (n.d.). Retrieved from https://www.drugs.com/paroxetine.html

Ethics discussion:

4. Why will most people taking genetic testing not get good value from their money?

A war chest hidden by the Founding Fathers after the Revolutionary War.

Many of you may be familiar with the movie National Treasure. For those who are not, here is the IMDb editors summary: Benjamin Franklin Gates descends from a family of treasure-seekers who’ve all hunted for the same thing: a war chest hidden by the Founding Fathers after the Revolutionary War. Ben’s close to discovering its whereabouts, as is his competition, but the FBI is also hip to the hunt. [https://www.imdb.com/title/tt0368891/plotsummary]. After the war chest is found, Ben was offered 10% of the treasure’s worth as a finder’s fee, however, he believed the amount was too high and took only 1%, split it evenly with Riley. The treasure exhibits were donated to the Cairo Museum.What is a treasure trove? How would you classify the property? Who do you think should own the war chest once it was found – Gates, the government, etc. and why/why not? Please also find an article dealing with lost treasures. What was the outcome and do you agree or disagree with that outcome

Discuss in relations to what you have learnt in the course about the four steps of intentional thought to help convert data into knowledge and wisdom?

College of Administrative and Financial Sciences

Assignment 3

Decision Making & Problem Solving (MGT312)

Deadline for students: End of Week 13 (4/12/2021@ 23:59)

(To be posted/released to students on BB anytime in Week 4)

Course Name:	Student’s Name:
Course Code: MGT312	Student’s ID Number:
Semester: 1^st	CRN:
Academic Year: 1442/1443 H, First Semester

For Instructor’s Use only

Instructor’s Name: Dr. Asif Hasan
Students’ Grade:	Level of Marks:

Instructions – PLEASE READ THEM CAREFULLY

This assignment is an individual assignment.
Due date for Assignment 1 is by the end of Week 7 (23/10/2021).
The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented. This also includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submitted assignments will NOT be entertained.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Course Learning Outcomes-Covered

Define different perspectives and concepts of problem solving in diverse contexts and business situations. (C.L.O :2)
Demonstrate decision tools and employ appropriate analytical business models to break down complex issues. (C.L.O :4)
Demonstrate effective leadership skills and teamwork capacity for efficient decision making with the problem owners and other stakeholders as either a team member or a team leader. (C.L.O :5)

Assignment Instructions:

Log in to Saudi Digital Library (SDL) via University’s website
On first page of SDL, choose “English Databases”
From the list find and click on EBSCO database.
In the search bar of EBSCO find the following article:

Title: “How to Make Better Decisions with Less Data”

Author: Tanya Menon and Leigh Thompson

Date of Publication: November 07, 2016

Published: Harvard Business Review

Assignment Questions: (Marks 05)

Read the attached article titled as “How to Make Better Decisions with Less Data” by Tanya Menon and Leigh Thompson, published in Harvard Business Review, and answer the following Questions:

Summarize the article and explain the main issues discussed in the article. (In 500-600 words) (Marks 2)
Discuss in relations to what you have learnt in the course about the four steps of intentional thought to help convert data into knowledge and wisdom? Use additional reference to support your argument. (In 200-400 words) (Marks 1.5)

Critical Thinking Question

If you collect too much information for analyzing a decision, you can suffer from analysis paralysis, where you spend too much time thinking about a decision rather than making one. Recall a major financial decision you made recently, such as of a car or housing purchase or rental. Describe your process for making the decision. How could analysis paralysis have affected this process? (In 200-400 words) (Marks 1.5)

Identify what operations and supply chain should do to help BYD compete including a mission, objectives, distinctive competence, and key decisions.

Text

Description automatically generated
College of Administrative and Financial Sciences

Assignment 3

Deadline: 4^th December 2021

Course Name: Introduction to Operations Management	Student’s Name:
Course Code: MGT311	Student’s ID Number:
Semester: Ist	CRN:
Academic Year: 1442/1443 H

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: Marks Obtained/Out of	Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted

To understand the concept of transformation and invention of the Product.
To manage the level of Inventory.
To take the decision of New product Development.
To understand supply chain strategy.

Critical Thinking

The Chinese company BYD is pursuing electric cars and hopes to become the world’s largest car company. With the financial support of American Warren Buffett, the company, which has only been in existence for a few years mostly making batteries, has caught the attention of not only Mr. Buffett but also many in the auto industry.

ELECTRIC AND HYBRID CARS

Electric cars (also known as electric vehicles or EVs) rely exclusively on battery power. With an all-electric EV there is no internal combustion engine, muffler, gasoline tank, air and fuel filters, and other parts needed to run a gasoline powered system. The vehicle itself also produces no tailpipe emissions, and by getting its power from an efficient utility company, overall, it produces fewer greenhouse gases. This is especially true if the electricity is produced with nuclear power, clean coal, or natural gas. EVs are also less expensive to fuel on a per mile basis. Electric cars, however, have a shorter driving range and are difficult to operate with long distance travel.

There are also some safety concerns associated with using a lithium-ion battery, as lithium is a highly reactive material prone to explosion

Do you think electric cars may become a viable alternative to gasoline-powered vehicles? What is the future of the electric car? Explain your answer especially in the context of KSA as Saudi Arabia is moving towards carbon free economy.

Given a business strategy of being the word leader in manufacturing electric cars with innovative technology, what operations and supply chain strategy do you think BYD should pursue? Identify what operations and supply chain should do to help BYD compete including a mission, objectives, distinctive competence, and key decisions.

Note: Go to the company website and answer the above questions. This is just an advice. You may surf net , company report, Saudi vision 2030 to answer the questions.

Answers:

Identify and discuss two methods of production planning.

Assignment (3)

Deadline: Saturday 27/11/2021 @ 23:59

Course Name: Introduction to Accounting Information Systems	Student’s Name:
Course Code: ACCT 402	Student’s ID Number:
Semester: II	CRN:
Academic Year: 1443 H

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: /5	Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.

Question 1: (06 Marks)

Khan Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building and the production, shipping, and receiving departments are housed in a renovated warehouse a few blocks away. Customers place orders on the company’s website, by fax, or by telephone. All sales are on credit, FOB destination. During the past year sales have increased dramatically, but 15% of credit sales have had to written off as uncollectible, including several large online orders to first-time customers who denied ordering or receiving the merchandise. Customer orders are picked and sent to the warehouse, where they are placed near the loading dock in alphabetical sequence by customer name. The loading dock is used both for outgoing shipments to customers and to receive incoming deliveries. There are ten to twenty incoming deliveries every day, from a variety of sources.

The increased volume of sales has resulted in a number of errors in which customers were sent the wrong items. There have also been some delays in shipping because items that supposedly were in stock could not be found in the warehouse. Although a perpetual inventory is maintained, there has not been a physical count of inventory for two years. When an item is missing, the warehouse staff writes the information down in log book. Once a week, the warehouse staff uses the log book to update the inventory records. The system is configured to prepare the sales invoice only after shipping employees enter the actual quantities sent to a customer, thereby ensuring that customers are billed only for items actually sent and not for anything on back order.

Questions:

a. Identify at least three weaknesses in Khan Corporation’s revenue cycle activities. [2 points]

b. Describe the problem resulting from each weakness. [2 point]

c. Recommend control procedures that should be added to the system to correct the weakness. [2 point]

Question 2: (2 Marks)

What are the advantages of the REA data model over the traditional AIS model?

Question 3: (02 Marks)

Identify and discuss two methods of production planning.

Apply the principles of organizational behavior and development in order to effectively contribute to the success of health care organizations.

View the scenario called “Critical Decision Making for Providers” found in the Allied Health Community media.

In a 1,000-1,250-word paper, examine the scenario involving Mike, the lab technician, and discuss the following:

Discuss the consequences of a failure to report.
Explain the impact his decision had on patient safety and organizational performance (risk for litigation, organization’s quality metrics, workload of other hospital departments, etc.).
As Mike’s manager, describe how you would address the issue with him and steps you would take to ensure other staff members do not repeat the same kind of mistake.
Reflect on the scenario and describe what underlying aspects or issues may be contributing to workplace dilemmas such as this.
Consider the manner in which most health care organizations function (structure, people, technology, environment). As a leader, discuss what principles of organizational behavior and development can be applied to effectively contribute to the success of a health care organization. How could these principles be applied to this scenario?

A minimum of three academic references from credible sources are required for this assignment.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are required to submit this assignment to LopesWrite. Refer to the LopesWrite Technical Support articles for assistance.

Benchmark Information

This benchmark assignment assesses the following programmatic competency:

BS Health Sciences

4.1: Apply the principles of organizational behavior and development in order to effectively contribute to the success of health care organizations.

Identify differences between a bargaining and non-bargaining employee.

CBA Scavenger Hunt

Congratulations! You have been hired as the new Food and Beverage Director for the Westin Detroit Metropolitan Airport Hotel. As part of the general property training program all management personnel must become familiar with negotiated collective bargaining agreement between the Westin and UNITE HERE Local 24 duly elected representative. Review the collective bargaining agreement and respond to the questions below to test your knowledge of the major provisions of the CBA. Management personnel are expected to be abide by the terms and working conditions described in the CBA. Any questions or concerns should be conveyed to the Director of Human Resources.

Identify the union that is recognized as the exclusive bargaining representative of employees at the Detroit Marriott Renaissance Center.

Which employees are not represented by the Union according to the CBA? (1.1)

Under what circumstances may the employer deduct monthly membership dues, or other fees established by the Union constitution and by-laws from a represented employees pay check? (1.3)

What rights does the Union have in reference to presenting dues check-off/membership forms and other Union information to employees? (1.3)

Can employees that are designated as a department steward be paid for handing and adjusting grievances on Westin property? (2.3)

An employee comes up to you and asks if they can post a flyer about a union sponsored end of the year holiday party for employees to see. As the manager, would you allow this employee to hang such a flyer on company premises? (2.7)

Describe the circumstances in which supervisors and managers may perform the work of bargaining unit employees. (3.1)

How does the CBA define the work week? (3.3)

Identify situations in which a bargaining unit employee would be paid overtime. (3.3)

What role does seniority play when it comes to developing employee work schedules? (3.4-3.5)

How much notice must the Westin give to employees prior to changing their set work schedule or changing an employee’s days off? (3.4)

If no employees volunteer for overtime opportunities, which employees will be required to work overtime? (3.5)

Unless there are unforeseen circumstances, employees will not be required to work over _____ hours per shift. (3.6)

A hotel steward showed up to work today on-time to complete their scheduled six hour shift. Three hours into their shift the employee is told to go home due to overstaffing. How many hours of work will that employee be compensated for in their pay check for that day of work? (3.7a)

If the Westin decided to host a required employee meeting, employees must be compensated a minimum of _______ hours of pay at the applicable rate for that required meetings’ attendance. (3.7)

Employee Classifications (3.8)
1. Full-Time Employee

Part-time employee

Casual employee

Discuss the procedures for scheduling part-time employees. (3.11)

Can the Westin permit outside caterers to be used in lieu of bargaining unit employees? (3.12)

How often are employees paid? (4.2)

Which departments are covered by the CBA? (4.3)

Identify when a full-time employee receives the following vacation time. (5.1)
- Two weeks’ vacation

Three weeks’ vacation pay

Four weeks’ vacation pay

Is an employee entitled to have their unused vacation pay paid out to them if they have resigned from their position? (5.4)

Discuss the pay difference for a full-time employee that is scheduled to work on a holiday (as defined in the CBA) versus an employee that is not scheduled to work on a holiday. (6.1)
- Scheduled to work:

Not scheduled to work:

Grievance-Arbitration Procedures (9)
- How long does an employee have to file a written grievance?

The employee, a representative of the Union and the HR Director shall meet no later than _____ weeks after the grievance is filed.

If the parties cannot reach a settlement in regards to the grievance, what is the next step in the grievance resolution process?

Since the Family Medical Leave Act is a piece of required federal legislation, why do you think it was included in the CBA? (10.2)

What is the purpose of the Management Rights clause (11.1) in the CBA?

Bargaining unit members that are assigned to train newly-hired employees, shall be compensated at what rate? (15.2)

A full-time employee that has been employed for three continuous years is entitled to how many personal days? (21.1)

When scheduling room attendants, how many rooms can attendants be expected to clean in an eight hour shift? (schedule B)

An assistant cook who has been with the Westin for 10 months worked the following schedule this past week (December 2016). Determine the employee’s weekly pay according to wage provisions in the CBA. (Schedule A)

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday
Off	8 hours	8 hours	7 hours	10 hours	9 hours	10 hours
Total Weekly Pay: _________

Identify differences between a bargaining and non-bargaining employee.
- Differences
  - Unionized:

Non-bargaining workers

Reference

CBA between Westin Detroit Metropolitan Airport and UNITEHERE Local 24. (5/1/2014-04/30/2017). Retrieved from http://www.local24unitehere.org/wp-content/uploads/Westin-Detroit-Airport-Hotel-CBA-2014-2017.pdf

.Design an Internet Protocol (IP) addressing scheme for The Saudi Electronic University

Question #1

The Saudi Electronic University (SEU) has 3 branches namely central office, Male Branch and Female Branch in Riyadh. The central office is connected to each of its branches through high-speed serial WAN links. Male Branch and Female Branch each has 2 department: Theology & Technical. Each department has its own LAN, which is connected to the main router of the branch.

You’ve been hired by SEU to assist them in developing an IP addressing scheme, and you’ve been given the network address 192.168.20.0/24 to begin with. You are also given a list of networks addressing requirements below:

Conditions:

Male Branch’s Theology requires 4 hosts
Female Branch’s Theology requires 4 hosts
Male Branch’s Technical requires 4 hosts
Female Branch’s Technical requires 4 hosts
The link from Male Branch to central office requires and (Internet Protocol) IP address for each end of the link.
The link from Female Branch to central office requires an (Internet Protocol) IP address for each end of the link
.Design an Internet Protocol (IP) addressing scheme for The Saudi Electronic University
Question #2
The SEU has deployed Routing Information Protocol (RIP) as their routing protocol. Recently, a User from Male Branch reports that he cannot access and retrieve files from the Remote Server located in central office. As the main administrator for the SEU, you receive news from another administrator in your team that the problem is with the RIP setup, and that he has given you routing tables for all routers on the network
.Hint: Routing Information Protocol Tutorial:https://www.cisco.com/c/en/us/td/docs/switches/lan/catalyst2960xr/software/15-2_5_e/configuration_guide/b_1525e_consolidated_2960xr_cg/routing_information_protocol.pdf Identify the error and suggest the necessary measures so that the user can access the remote server of the central office.

Consider an economy that is characterised by the following New Keynesian model:
xt = Etxt+1 −1 σ[it − Etπt+1] + ut (6)

Economics 406 – Fall 2021 New Keynesian Model – sample questions

Consider an economy that is characterised by the following New Keynesian model:
xt = Etxt+1 −1 σ[it − Etπt+1] + ut (1)
where xt is the output-gap, it the nominal interest rate, πt inﬂation rate and ut a demand shock that follows a stationary AR(1) process:
ut = γut−1 + νt,, 0 < γ < 1 (2)
and νt ∼ N(0,σ2 u)
πt = βEtπt+1 + κtxt + et (3) where et is a cost-push shock that follows a stationary AR(1) process:
et = ρet−1 + ǫt, 0 < ρ < 1 (4)
and ǫt ∼ N(0,σ2 ǫ) The objective of the central bank is to minimize the loss function:
E0∞ X t=0βt(π2 t + λx2 t) (5)
(i) Brieﬂy comment where equations (1) and (3) come from [2 marks]
(ii) Find the optimal policy under discretion and interpret your answer 5 marks Using the guess solution that πt = γet, show that xt = −h κ κ2+λ(1−βρ)iet and πt =h λ κ2+λ(1−βρ)iet [6 marks]
(iv) Brieﬂy comment why policy under discretion is ineﬃcient compared to policy under commitment [2 marks]
Consider an economy that is characterised by the following New Keynesian model:
xt = Etxt+1 −1 σ[it − Etπt+1] + ut (6)
where xt is the output-gap, it the nominal interest rate, πt inﬂation rate and ut a demand shock that follows a stationary AR(1) process:
ut = γut−1 + νt,, 0 < γ < 1 (7) and νt ∼ N(0,σ2 u) 1 πt = βEtπt+1 + κtxt + et (8) where et is a cost-push shock that follows a stationary AR(1) process: et = ρet−1 + ǫt, 0 < ρ < 1 (9) and ǫt ∼ N(0,σ2 ǫ) The objective of the central bank is to minimize the loss function: E0 ∞ X t=0 βt(π2 t + λx2 t) (10) (i) Derive the ﬁrst-order conditions linking inﬂation and the output gap for the fully optimal commitment policy (ii) Explain why the FOC for time t diﬀer from the FOC for time t + i for i > 0
(iii) What is meant by a commitment policy that is optimal from a timeless perspective? [Explain in words]
(iv) What is the FOC linking inﬂation and the output-gap that the central bank follows under the optimal policy from a timeless perspective?
Useful concept/theories to know:
(i) How to derive the optimal policy under full commitment
(ii) Optimal policy under discretion
(iii) How and why optimal policy under commitment is diﬀerent from discretion
(iv) Stabilization bias and why it is diﬀerent from the inﬂation bias
(v) How can a central bank improve on the pure discretionary outcome?
2