Book: The Story Of Macroeconomics Flashcards
1
Q
What is an old name of macroeconomics
A
Business cycle theory
2
Q
What is an old word for aggregate demand
A
effective demand
3
Q
What is an old word for the demand for money
A
Liquidity demand
4
Q
What is the Lucas critique of macroeconomics
A
That creating models of expectations and acting upon them changes expectations f.ex Phillips curve
5
Q
What is the menu cost
A
That adjusting prices vost something so people put it of which creates distortion in output and demand
