Macro 2:26:19.docx - Macro Chapter 24 Economic Growth...

This preview shows page 1 - 2 out of 3 pages.

Macro 2/26/19 Chapter 24Economic Growth, Business Cycles, and UnemploymentMacroeconomics – the study of problems that affect the economy as a whole (lack of economic growth, recessions, unemployment, and inflation) and what to do about themTypes of economists:Classical – believe that business cycles are temporarily glitches, and generally favor laissez-faire, or nonactive policiesoLaissez-Faire – translates to “let them do”; don’t mess w/ it; Let the market beKeynesian – believe that business cycles reflect underlying problems that can be addressed w/ active government policiesBy the 1980’s, Classical and Keynesian economics merged into a new, conventional macroeconomicsFollowing the crash of 2008, the US economy experienced structural stagnationStructural Stagnation – a period of protracted slow growthTwo Frameworks:The long-run growth framework – focuses on incentives for supplyoSometimes called supply-side economicso

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture