Instructions

Research and write a two- to three-page paper, in APA Style, analyzing macroeconomic theories and the Great Depression.

Consider the following to guide your research and writing.

• Explore the various macroeconomic theories and explain the differences between each one (classical, Keynesian, and monetarist).
• Explain why monetarists believe the Fed should have stimulated the economy by expanding the money supply during the Great Depression or other economic downturns.
• The Keynesians challenge the Friedman–Schwartz monetarists’ monetary policy cure for the Great Depression. Use the AD-AS model to explain the Keynesian view. (Hint: Your answer must include the investment-demand curve.)

See the rubric for specific grading criteria.

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