Long-Run Consequences of Stabilization Policies

This study guide covers the long-run consequences of fiscal and monetary policies. Key topics include: the effects of fiscal and monetary policies on long-run equilibrium, the Phillips Curve (relationship between inflation and unemployment), the Quantity Theory of Money (money supply, velocity, price level, and output), national debt and deficits, crowding out, and factors influencing economic growth. It also provides practice questions and exam tips.