The History of Macroeconomic Theory

In class we reviewed the Phillips Curve which is a model that shows the negative relationship between inflation and unemployment.  Movements along the SRPC are from GWEP and shifts in the SRPC are PNC.

Afterwards, we touched on the history of Macroeconomic Theory.  Students should be familiar with the Classic Model of Price Level, Keynesian Economics, Monetarism, The Natural Rate Hypothesis, Rational Expectations and the real Business Cycle Theory.

Finally, we talked about modern economic thought and that the primary role of the Fed is dealing with inflation and unemployment.

Notes - History of Macroeconomic Theory

HW - Read Module 37
          Finish Review Packet
          Module 35/36 ?s