1 Aggregate Demand and Aggregate Supply (Professor)
Please discuss the Model of Aggregate Demand and Aggregate Supply as defined in Chapter 20 of the course textbook. What is the aggregate-demand curve? What is the aggregate-supply curve? How is the AD/AS model related to the three key facts concerning economic fluctuations that are discussed in Chapter 20 by Mankiw?
#2 Monetary Policy and Fiscal Policy (Professor)
Please explain the difference between monetary policy and fiscal policy as discussed in Chapter 21 of the course textbook. According to the theory behind monetary policy, why does the AD curve slope downward? How does fiscal policy influence aggregate demand?
#3 The Phillips Curve Model (Professor)
Please discuss the Phillips Curve model as defined in Chapter 22 of the course textbook. How is the Phillips Curve model related to the AD/AS model? Discuss the difference between the short-run and long-run Phillips Curve model.
#4 The Short-Run Trade-Off Between Inflation and Unemployment
Consider what is “natural” about the natural rate of unemployment. Why might the natural rate of unemployment differ across countries?