Economics (McConnell), AP* Edition, 20th EditionChapter 37:
Current Issues in Macro Theory and Policy After studying this chapter, you should be able to: LO 37.1 | Describe alternative perspectives on the causes of macroeconomic instability, including the views of mainstream economists, monetarists, real-business-cycle advocates, and proponents of coordination failures. | LO 37.2 | Discuss why new classical economists believe the economy will "self-correct" from aggregate demand and aggregate supply shocks. | LO 37.3 | Identify and describe the variations of the debate over "rules" versus "discretion" in conducting stabilization policy. | LO 37.4 | Summarize the fundamental ideas and policy implications of mainstream macroeconomics, monetarism, and rational expectations theory. |
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