Lesson Details

Unit 6: Lesson 37 - Can Government Manage the National Economy?

Although economists agree much more often than they disagree, the opinions of prominent economists on economic policy often conflict. This lesson seeks to clarify why economists disagree. Understanding the reasons for disagreement among experts may help students to make their own judgments about economic policies. The lesson concludes by having students compare and contrast the major macroeconomic theories, which are Keynesian and New Classical. New Classical economics includes the Monetarist and Rational Expectations theories.

Concepts:

  • Aggregate Demand (AD)
  • Aggregate Supply (AS)
  • Assumptions
  • Fiscal Policy
  • Keynesian Theory
  • Monetarist Theory
  • Monetary Policy
Standards:
  • Standard #18: Economic Fluctuations

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