Business Fluctuations The lesson of Keynesian economics is that “changes in aggregate demand can have a powerful impact on the overall level of output, employment,…
1. PREPARED BY UMAIR 2. The AS/AD model is the basic macroeconomic tool for studying output fluctuations and the determination of the price level and the inflation rate ◦…
178.200 Intermediate Macroeconomics Tutorial (9) Policy & Debt 1 Short Answer Questions 1. Suppose a economy is initially at point A on the graph. (a) Compare the effects…
1. Chapter 16Macro Policy Debate:Active or Passive? 2. Active Vs. Passive Approach• Active Approach: This approach views theeconomy as relatively unstable and unable torecover…
1. PUTTING IT ALL TOGETHER MODULE 45 2. BASIC MACROECONOMIC MODELSWe can use the basic macroeconomic models to analyze scenarios and evaluate policy recommendations.This…
1. Aggregate demand andaggregate supply 2. Keynesian theory General theory of employment, interest andmoney Level of output/income and employmentdepends on level of…
1. Fiscal PolicyManipulation of GovernmentSpending and Taxation to achieve Macro Economic Goals 2. Basics of Fiscal Policy• Is all about Government Spending &Taxation•…
1. Today Aggregate Demand, Domestic Product, and National Income The Circular Flow of Spending, Production and Income Consumer Spending and Income: The important Relationship…