What you’ll learn to do: Identify appropriate macro policy options in response to the state of the economy
In this section, we will analyze how changes in the market impact the equilibrium price.
The specific things you’ll learn in this section include:
- Understand the effectiveness and limitations of fiscal and/or monetary policy for a given state of the economy
- Choose an appropriate fiscal and monetary policy for a given state of the economy
The learning activities for this section include:
- Reading: Introduction to Real World Macro Policy Options
- Self Check: Real World Macro Policy Options
- Reading: Lessons from the 1970s
- Self Check: Lesson from the 1970s
- Reading: Crowding Out Revisited
- Self Check: Crowding Out Revisited
- Reading: Practical Problems with Discretionary Fiscal Policy
- Self Check: Practical Problems with Discretionary Fiscal Policy
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.