About This Chapter
Supply-Side Policy & Policy Comparisons - Chapter Summary
Explore the engaging lessons in this informative chapter to ensure you have a complete grasp of supply-side policy and how it compares to fiscal and monetary policies. This chapter also offers in-depth analyses of the misery index, the Phillips curve model and aggregate supply. Feel confident in your understanding of these topics by reviewing the lessons as often as you'd like and checking your knowledge with multiple-choice quizzes. Any questions that arise about the materials can be submitted to our experts using the Dashboard. Once you've completed this chapter, you will be able to:
- Compare and contrast Keynesian and monetarist policies and views of the aggregate supply curve
- Discuss the Phillips curve as the relationship between inflation and unemployment
- Identify and describe factors that shift the Phillips Curve
- Explain the purpose of the misery index
- Exhibit knowledge of supply-side economics in monetary and fiscal policy
- Differentiate between monetary policy, fiscal policy and supply-side policy
- List obstacles that impact the success of fiscal and monetary policy
1. The Phillips Curve Model: Inflation and Unemployment
Can we have low unemployment and low inflation at the same time? Some economists think the answer is no. In this lesson, we'll explore the relationship between inflation and unemployment in the short run, what economists call the Phillips Curve.
2. Factors That Shift the Phillips Curve
Inflation and unemployment are inversely related. In this lesson, discover the factors that lead to a shift in the Phillips Curve by looking at a fictitious economy as an example.
3. Misery Index: Purpose & Calculation
This lesson details the commonly used misery index. The index is a combination of two metrics that quantify a country's labor situation and economic stability. Learn how to calculate the index and compare different countries around the world.
4. Supply-Side Economics in Fiscal and Monetary Policy
This lesson explains what supply-side economics is, where it started, and how economists illustrate it. It provides a basic overview of the still-controversial theory that was popularized by President Ronald Reagan during the 1980s.
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Other chapters within the UExcel Introduction to Macroeconomics: Study Guide & Test Prep course
- Fundamental Concepts of Macroeconomics
- Government Failure in Macroeconomics
- Demand, Supply & the Economic Market
- Role of Government in Macroeconomics
- National Income Accounting Overview
- Unemployment & the Economy
- Basic Concepts of Inflation
- Measurements of Inflation
- The Business Cycle & Economics
- Aggregate Demand in Economics
- Fiscal Policy in Economics
- Budgets & National Debt
- Understanding Monetary Policy
- Fundamentals of Money
- Understanding the Federal Reserve System
- UExcel Introduction to Macroeconomics Flashcards