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.