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Learning Objectives
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In this chapter you will learn:
  • The differences between the historical Keynesian and classical macro perspectives.
  • About alternative perspectives on the causes of macroeconomic instability, including the views of mainstream economists, monetarist, real-business cycle advocates, and proponents of coordination failures.
  • What the equation of exchange is and how it relates to "monetarism."
  • Why new classical economists believe the economy will "self-correct" from aggregate demand and aggregate supply shocks.
  • The variations of the debate over "rules" versus "discretion" in conducting stabilization policy.







McConnell, Macro 17e OLCOnline Learning Center

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