巴德 宏观经济学原理（英文版·第8版）Chapter 8.pptxVIP

Why do Americans earn more and produce more than Europeans? 8When you have completed your study of this chapter, you will be able to1 Explain what determines potential GDP.2 Explain what determines the natural unemployment rate.CHAPTER CHECKLISTPotential GDP and the Natural Unemployment Rate MACROECONOMIC APPROACHES AND PATHWAYSThe Three Main Schools of ThoughtThe three main approaches to macroeconomics are based on three schools of thought:Classical macroeconomicsKeynesian macroeconomicsMonetarist macroeconomics Classical MacroeconomicsAccording to classical macroeconomics, the market economy works well and delivers the best available macroeconomic performance.Aggregate fluctuations are a natural consequence of an expanding economy with rising living standards.Government intervention can only hinder the ability of the market to allocate resources efficiently.MACROECONOMIC APPROACHES AND PATHWAYSMACROECONOMIC APPROACHES AND PATHWAYS Classical macroeconomics fell into disrepute during the 1930s, which was a decade of high unemployment and stagnant production throughout the world. Great Depression is a decade (the 1930s) of high unemployment and stagnant production throughout the world economy.Classical macroeconomics predicted that the Great Depression would end but gave no method for ending it more quickly.MACROECONOMIC APPROACHES AND PATHWAYSMACROECONOMIC APPROACHES AND PATHWAYS Keynesian MacroeconomicsAccording to Keynesian macroeconomics, the market economy is inherently unstable and it requires active government intervention to achieve full employment and sustained economic growth.John Maynard Keynes, in his book “The General Theory of Employment, Interest, and Money,” began this school of thought.Keynes’ theory was that too little consumer spending and investment led to the Great Depression.MACROECONOMIC APPROACHES AND PATHWAYS Keynes’ solution to depression and high unemployment was increased government spending.But Keynes predicted that his policy aimed