Long-run consequences of stabilization policies

This course is a part of AP®︎ Macroeconomics, a 9-course Topic series from Khan Academy.

In this unit, you'll build on your understanding of the effects of fiscal and monetary policy actions and to examine the concept of long-run economic growth. Topics include short-run and long-run Phillips curves, the quantity theory of money, and crowding out.

This course contains 6 segments:

Fiscal and Monetary Policy Actions in the Short Run

In the last unit we introduced fiscal policy and monetary policy as potential solutions to correcting extreme swings in the business cycle. However, these policies are frequently used together, rather than in isolation. In this lesson, learn about the short-run consequences of using monetary and fiscal policy at the same time.

The Phillips curve

In the 1950s, the economist A.W.H. "Bill" Phillips observed that higher unemployment was associated with lower rates of inflation. This relationship came to be known as "the Phillips curve". Learn about what the short-run Phillips curve and the long-run Phillips curve say about the relationship between inflation and unemployment in this lesson.

Money growth and inflation

Crowding out

Deficits and debts

Economic growth

In this lesson, learn how economists define economic growth, and what influences economic growth.