MODULE 45

Putting It All Together

In this Module, you will learn to:

• Use macroeconomic models to conduct policy analysis

• Improve your approach to free response macroeconomics questions

Having completed our study of the basic macroeconomic models, we can use them to analyze scenarios and evaluate policy recommendations. In this module we develop a step-by-step approach to macroeconomic analysis. You can adapt this approach to problems involving any macroeconomic model, including models of aggregate demand and supply, production possibilities, money markets, and the Phillips curve. By the end of this module you will be able to combine mastery of the principles of macroeconomics with problem solving skills to analyze a new scenario on your own.