Week 12: Stabilization Policy and Debt

Lecture Slides [ch18 pptx; ch19 pptx]

IV. Policy Debates

A. Stabilization Policy

Required Readings:

                 Mankiw: ch. 18 - Alternative Perspectives on Stabilization Policy

 

Practice Problem Set #3: Understanding fluctuations in IS/LM

 

B. Fiscal Policy and the Government Budget Deficit

Required Readings:

                 Mankiw: ch. 19 - Government Debt and Budget Deficits