Practical men, who believe themselves to be quite exempt from any
intellectual influences, are usually the slaves of some defunct economist.
...John Maynard Keynes
Economies rarely behave properly. Like soups in the
Goldilocks tale, some are too hot and some are too cold. Very few are
"just right."
When economies overheat, inflation rages. When they
cool too rapidly, workers get tossed from their jobs. How does this happen?
Is it inevitable? Should governments actively intervene to counter these
business cycles? What policies might make sense?
Let's look at some options.
III-B. Unemployment and inflation
1. Causes and effects
Unemployment and Inflation
2. Fiscal policy
Government Finance: Just the Facts
Spending and Tax Policy
3. Money and monetary policy
What is Money?
Role of Money
A Dear Abby Quiz
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