2001-03 EC: What is taught in First Year Macroeconomics: Changes over the last twenty years. (working paper)
published: 2001 | Research publication | Working Paper - Economics
ABSTRACT: The material covered in the first-year macroeconomics course has changed over the last 20 years. There is now more emphasis on economic growth and the role of government in facilitating economic growth. There is now less emphasis on national income accounting, the simple Keynesian model and the monetary sector. There are two ways to capture the interaction between inflation and unemployment: the traditional Aggregate Supply-Aggregate Demand model; or a presentation of the policy reaction function of the central bank. In the latter presentation the central bank manipulates the interest rate to achieve its inflation target at full employment.
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revised Mar 7/05