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Explain the four phases of the business cycle.
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Explain how the relationship between aggregate supply and aggregate
demand is an important determinant of the levels of unemployment and inflation
in an economy.
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Explain how the government uses taxing and spending decisions (fiscal policy)
to promote price stability, maximum employment, and economic growth.
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Explain the limitations of using GDP to measure economic welfare.
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Explain how the Federal Reserve uses monetary tools to promote price stability,
maximum employment, and economic growth.
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Explain how monetary policy affects the level of inflation in the economy.