|
After reading Chapter 8, you should be able to:
- Discuss the differences and similarities between the
macroeconomic Aggregate Supply/Aggregate Demand model and the
microeconomic Supply/Demand model. (Section 8.1)
- Contrast the perspectives of classical economists to those of
Keynesians. (Section 8.2)
- Same as above. (Section 8.2)
- Explain what the Aggregate Demand Curve is, why it slopes down and
to the right, and what might cause it to shift. (Section 8.3)
- Describe the long-run aggregate supply curve and how
full-employment output can change. (Section 8.3)
- Discuss long run macroeconomic equilibrium and price and wage
stickiness in the short run. (Section 8.3)
- Explain the relationship between the Long Run Aggregate Supply
curve, potential GDP, and actual GDP. (Section 8.4)
- Relate the difference between demand-side and supply-side
inflation and deflation in the long run. (Section 8.5)
- Discuss the relationship between political views and Keynesian vs.
Classical economic views. (Section 8.6)
- Interpret how the war against terrorism can cause both inflation
and lower output, and ways in which these effects might be
countered. (Section 8.7)
|