Price Stability, Employment, and Growth

TOPIC III: Economic Growth

OBJECTIVES: 
  1. using the AS/AD model, define and explain how the economy can growth while maintaining price stability.
  2. define and explain growth recessions, and inflation.
  3. prescribe traditional Keynesian recommendations for promoting growth.
  4. define and describe recommended policies of supply side economics.

KNOW THE FOLLOWING TERMS

Growth recessions 

Inflation 

Supply side Economics

 Laffer Curve 

KEY CONCEPTUAL QUESTIONS

  1. How can the goal of economic growth and price stability be attained?
  2. What problems can occur as the economy expands?
  3. What policy recommendations exist to promote economic growth?