Tuesday, January 22, 2019

Tuesday January 22

New Concepts:
  • Government Intervention to Increase Output (Y)
    • Demand Side Policies - Keynes
      • Increase Output w/o increasing the overall price level
        • Fiscal Policy - Tax/Spend
        • Monetary Policy - Interest Rates
    • Supply Side Policies - Classic LRAS
      • Interventionist Policy
        • Investing in Human Capital (Education/Training)
        • Research and Development
        • Provision and maintenance of infrastructure
        • Laws that support and encourage business
      • Market Based
        • Deregulation
        • Privatization
        • laws that increase competition (Anti-monopoly laws)
        • Labor market reforms
          • reduce union power
          • reduce or eliminate minimum wage
          • reduce or eliminate unemployment benefits
    • Evaluation of Government intervention
Resources:
Power Point - Fiscal Policy

Khan Academy Video - Fiscal and Monetary Policy

Video - Fiscal Policy

Video - Should we use fiscal policy?

Khan Academy Video - Risks of Keynesian Thinking
       Sal talks about how government spending is difficult to unwind

Power Point - Monetary Policy

Video - The Fed

Video - Monetary Policy

Homework:  Due Friday January 25

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