Macroeconomic Theories

Soaring Crane

Does anyone know of any comprehesive sites featuring ALL of the following: the Keynesian theory, Monetarist theory, and the Rational Expectations theory?

Any ones that compare/contrast them would be excellent.

Thanks again.

Soaring Crane

I'm having a bit of trouble classifying the following under the three theories:

1. Aggregate supply is more vertical.
2. Aggregate supply is more horizontal.
3. The aggregate supply curve is always vertical.

I know 2 is Keynesian; it's the "vertical" ones I'm stumped on. Is the aggregate supply curve ALWAYS vertical for Monetarist theory? And I don't quite understand the difference between this and Rational Expections. Is there a difference between "aggregate supply curve" and "aggregate supply?"

iansmith

You may want to look at this website.

http://www.tutor2u.net/economics/con...ate_supply.htm
http://www.tutor2u.net/revision_notes_economics.asp
and they have a forum that might answer your question
http://www.tutor2u.net/forum/default.asp

I took a macroeconomics class a few years ago. My memories my be playing tricks on me. So as far as I remember aggregate supply and aggregate suply curve are different. Also remember what keynesian, monetarist and rational expectations theory states. It is three different view of the world and what influence the economy.

Also, I remember the aggregate supply curve is always vertical in the long run and this is usually the classical view (monestarist?).

Soaring Crane

Do all three of the theories agree that it is essential to have a clear, consistent economic policy?

iansmith

Yes as far as I remember, or at least more than the laisser-faire approahc of classical and neo-classical theory. However, each theory have argue different approach controlliing economy so the policies will be different.

http://www.bized.ac.uk/virtual/economy/library/theory/