What you’ll learn to do: understand the effects of tax and spending policy from a neoclassical perspective
Here are some of the specific things you’ll learn to do in this section:
- Define and give examples of supply-side economics
- Explain the types of lag times that often occur when solving economic problems
- Describe the neoclassical long-run aggregate supply curve
- Understand and describe the emergence of New Classical Economics, along with its main tenets
- Define Ricardian Equivalence
LEARNING ACTIVITIES
The learning activities for this section include:
- Reading: Effects of Tax and Spending Policy from a Neoclassical Perspective
- Reading: Supply-Side Economics
- Self Check: Supply-Side Economics
- Reading: Policy Implications of the Neoclassical Perspective: Policy Lags
- Self Check: Policy Lags
- Reading: Policy Implications: No Phillips Curve Tradeoff
- Self Check: No Phillips Curve Tradeoff
- Reading: New Classical Economics and Rational Expectations
- Self Check: New Classical Economics and Rational Expectations
- Reading: Ricardian Equivalence: How Government Borrowing Affects Private Saving
- Self Check: Ricardian Equivalence
- Reading: Policy Implications: Inflation, Recession, and Unemployment
- Self Check: Policy Implications: Inflation, Recession, and Unemployment
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.