Economics (McConnell), 18th Edition

Chapter 36: Current Issues in Macro Theory and Policy

IN THIS CHAPTER YOU WILL LEARN:

1. About alternative perspectives on the causes of macroeconomic instability, including the views of mainstream economists, monetarists, real-business cycle advocates, and proponents of coordination failures.



2. What the equation of exchange is and how it relates to "monetarism."



3. Why new classical economists believe the economy will "self-correct" from aggregate demand and aggregate supply shocks.



4. The variations of the debate over "rules" versus "discretion" in conducting stabilization policy.