No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Eighteen: The “macro” view of the economy 445 DESIRED LEARNING OBJECTIVES At the conclusion of this chapter, the student should be able to... § § Compare and contrast fiscal vs. monetary policy § § Describe why idle resources may not lead to a “free lunch” with government spending § § Define Aggregate Demand and list its four components § § Explain why a focus on consumption as the biggest source of economic activity may be misleading § § Define the components of Aggregate Supply