Economics Chapter 17 – Achieving Economic Stability

Objective:

24		Topic: Aggregate Supply and Demand Standard: Explains how aggregate supply and demand reflect the overall activity of the economy.
27		Topic: Business Cycle Economic Cycle Standard: Identifies and analyzes the nature and causes of inflation and deflation and describes their impact on economic decisions made by businesses and households.

Identifications – in complete sentences, answer who, what, where, when, and why important to the following issues.

Section 1 – The Cost of Economic Stability

1. The Economic Costs
2. The Social Costs

Section 2 – Macroeconomic Policies

3. Aggregate Supply
4. Aggregate Demand
5. Equilibrium

Section 3 – Stabilization Policies

6. Demand-Side Policies
7. Supply-Side Policies
8. Monetary Policies
9. Milton Friedman

Section 4 – Economics and Politics

10. An Independent Monetary Authority
11. Why Economists Differ
12. Why Economic Politics