1.     Labour markets. Critically discuss the success of structural reforms on the flexibility of the labour market in your selected country. Discussion should include the effects of changes in the structure of the labour market institutions and any policy reforms related to competitiveness on unemployment rates and growth rates (avoid explaining reforms, the focus should be on the effects of these reforms). How does the economy adjust to medium run equilibrium when there is an expansionary monetary policy? Does the AS-AD model useful in explaining movements in price and output? What are the limitations? Discuss.  (Macroeconomic variables of interest may include, employment protection legislation index (or any other similar variable), PMR index (or any other similar indices), unemployment rate, money supply, price level, GDP.     General Guidelines  ·      During our lectures we have explained various macroeconomic theories with giving examples for advanced economies such as the EU and the US. In this assignment, the focus will be on discussing these issues for developing economies and emerging markets. You are expected to select a country from the followings: Albania, Belarus, Bulgaria, Croatia, Czech Republic, Hungary, Moldova, North Macedonia, Poland, Romania, Serbia, and Turkey (Alternatively, you can also select other emerging economies of Latin America and Asia).  ·      There will be a 3000 wordcount limit for the coursework. You are expected to use it equally among the two questions (1500 words for each question).  ·      You can obtain annual time series including a timespan from 2006 to 2019 (or 2020) for selected macroeconomic variables. You can reduce the number of observations according to the availability of data.  ·      Macroeconomic variables that will be used in the analysis vary depending on the subject you select. Some examples for these variables are given in parenthesis at the end of each topic. These examples may give you some idea about what data to choose for the analysis. You may also include other variables that you think it is important. ·      You are not expected to run regressions for testing any relevant model, however, you are expected to use data for your observations.   ·      These variables are available from the IMF, OECD and ECB websites.  They are also available from National Central Banks and National Statistical departments. You can always use proxies for some variables that you find it hard to obtain. For example, measure of technological progress in question 1, can be proxied by variables such as intellectual property rights, government support for scientific research, state of higher education, etc. (https://www.internationalpropertyrightsindex.org/countries) You are expected to use theory, data and some evidence (from the existing literature) in your explanation. Developing arguments and discussions are crucial for the analysis. Include crisis period in your analysis and make some evaluation for the variables of interest before and after crisis period.