1. Chapter 17. Debates Link to syllabus Skip Real Business Cycle Theory

2. Classical versus Keynesian Macro. Fig 17-2, p. 473

3. Fiscal Policy with a Fixed Money Supply. Fig. 17-4, p. 478 Increase in interest rate lowers the expansionary effect on AD – this is what we have called crowding out.

4. The Velocity of Money. Fig 17-5, p. 479 Not exactly constant

5. Comparisons of Velocities of M Different Text.

6. Milton Friedman, 1912-2006 Link to Friedman’s bio http://www.hoover.org/bios/friedmanbio Most prominent advocate of a return to free market/non- governmental policies. Influence concretized under President Reagan. Also: leading ‘monetarist’ and a Nobel Prize winner.

7. Monetary Growth Rule i

8. Monetary Growth Rule ii

9. Five Key Questions about Macro Policy. Table 17-1, p. 489