MACROECONOMIC EQUILIBRIUM AND FISCAL POLICY

Upon completing this lecture, students should understand the AD and AS model, Short-run and long-run equilibrium within the macro economy, and fiscal policy. Both the classical and Keynesian's point of view will be presented.

1. Understand the inflationary and recessionary gap.

2. Compare and contrast short-run and long-run equilibrium.

3. Define multiplier and its applications.

4. Evaluate the effectiveness of changes in fiscal policy.

TOPICS

Please read all the lectures by clicking on the following topics.

CLASSICAL AND KEYNESIAN ECONOMICS

AGGREGATE EXPENDITURE MODEL

AN EXAMPLE

FISCAL POLICY