1 Introduction to Macroeconomics
2 Measuring the Macroeconomy
3 An Overview of Long-Run Economic Growth
4 A Model of Production
5 The Solow Growth Model
6 Growth and Ideas
7 The Labor Market, Wages, and Unemployment
8 Inflation
9 An Overview of the Short-Run Model
10 The IS Curve
11 Monetary Policy and the Phillips Curve
12 Stabilization Policy and the AS/AD Framework
13 The Global Financial Crisis: Overview
14 The Global Financial Crisis and the Short-Run Model
15 The Government and the Macroeconomy
16 International Trade
17 Exchange Rates and International Finance
18 Parting Thoughts

Organize

Learn

Connect

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Chapter 12: Stabilization Policy and the AS/AD Framework

Study Plan

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This chapter focuses on stabilization policy and the role of the AS/AD framework. How, in the presence of a systematic monetary policy, can we combine the IS curve and the MP curve to get an aggregate demand (AD) curve? How can the Phillips curve be reinterpreted as an aggregate supply (AS) curve? How does the AD and AS curves represent an intuitive version of the short-run model that describes the evolution of the economy in a single graph? How can we further understand modern theories that underlie monetary policy, including the debate over rules versus discretion and the importance of expectations?

ORGANIZE

  1. Read the assigned sections from Chapter 12 in your print text or ebook and review the numbered “Summary” points that concludes each chapter This concept summary section highlights the key ideas that you will read about in the chapter.
  2. Read and print-out the Chapter Outline to bring to lecture and use it for note-taking. Check items that your instructor covered in class.
  3. Use the Vocabulary Flashcards to test your memory of the key terms in the chapter. You can even shuffle cards from earlier chapters if you’re trying to study for a test.

LEARN

  1. Read the Chapter Summary to review key ideas presented in the assigned reading.
  2. Take the Diagnostic Quiz to assess your understanding of basic concepts.  Examine the diagnostic quiz feedback, then review your notes and re-read sections in your textbook or ebook that correspond to questions you missed.
  3. Answer the Review Questions and submit your answers to the Norton Gradebook for your instructor to review and grade.

CONNECT

  1. Watch the Concept Tutorial Animations to get step-by-step explanations and derivations of the most important macroeconomic models and concepts presented in the text.
  2. Use the Data Plotter to see how various sets of real macroeconomic data are modeled and represented in graphical form.
  3. Access the Country Snapshots document to complete the end-of-chapter exercises in the text.
  4. Work the end of chapter Problems assigned by your instructor. If your instructor has assigned SmartWork online homework, click here.