1. AP MACROECONOMICS SCHOOLS OF THOUGHT IN ECONOMICS

2. – COMPETITION IS GOOD FOR THE ECONOMY AND PROMOTES EFFICIENT PRODUCTIVITY – WE ALWAYS REVERT BACK TO LRAS (FE) – POOEY ON GOVERNMENT INTERVENTION UNLESS IT IS TO REGULATE THOSE WHO SEEK TO TAKE ADVANTAGE – BELIEVE IN SAY’S LAW: SUPPLY CREATES IT’S OWN DEMAND

3. THE KEYNESIANS – COMPETITION IS GOOD BUT INHERENTLY FLAWED – GAP OF WEALTH CREATES WINNERS AND LOSERS – GENERALLY ARE PRONE TO SPEAK FOR PEOPLE WHO LIVE WITHOUT – DON’T BELIEVE IN LONG RUN; “IN THE LONG RUN, WE’RE ALL DEAD” – STOP RECESSIONS! – UTILIZE TAXING AND SPENDING POWER TO OFFSET DOWNTURNS

4. THE MONETARISTS – COMPETITION IS GOOD BUT NEEDS FINE-TUNING BUT NEEDS FINE-TUNING – THE ECONOMY HAS PEAKS AND TROUGHS INEVITABLY – TOO LATE TO SEE RECESSIONS – TOO LATE TO PASS REGULATIONS – SOOOOOOOOO……MANIPULATE THE i%