Brief History of Macroeconomic Thought and Policy

Read this chapter to examine macroeconomic attitudes towards economic policies of the three main schools of economic thought: Classical, Keynesian, and Monetarist. Also, learn about modern day interpretations of the main ideas.

3. Macroeconomics for the 21st Century

Try It

Show the effect of an expansionary monetary policy on real GDP

  1. according to new Keynesian economics
  2. according to the rational expectations hypothesis

In both cases, consider both the short-run and the long-run effects.