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Cards In This Set
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Founder of the National Bureau of Economic Research and business cycle
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Wesley Mitchell
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Why are business cycles of agriculuture diff from the normal business cycle
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-cuz agricultural econ is probably close to a vertical line so demand shocks don't cause output fluctuations
-reason for this is it is mainly affected by weather making shifts of the short-run aggregate supply curve the primary source of fluctuations (other business cycyles is cuz of short-run aggregate demand) |
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Command econ
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Having gov take over private industry and replace markets
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Who wrote The General Theory of Employmnet, Interest, and Money?
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Keynes
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Classical economists regard the short-run as what?
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Unimportant
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Animal spirts refers to what
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Business confidence
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What is the classical view of business confidence
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-no effect on either the aggregate price level or aggregate output, as long as money supply stayed constant
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Macroeconomic policy activism
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The use of monetary and fiscal policy to smooth out the business cycle
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Aggregate fiscal spending causes what?
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Is deficit spending on a large scale to create jobs
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What is a good exmaple of how fiscal spending benefitted an econ?
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WWII
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According to Keynes is monetary policy good in depression conditions?
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No
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Who wrote A Monetary History of the United States
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Friedman and Schwartz
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Wha did Friedman and Schwartz show
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The business cycle changes with fluctuations in the money supply
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Do fiscal policy and monetary policy both involve political choices?
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Fiscal policy does and monetary policy doesn't
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Monetarism
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Asserts that GDP will grow steadilly if the money supply grows steadily
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