Document Type
Article
Publication Date
1-1-2013
Publication Title
Journal of Economic Education
Abstract
A lack of consensus remains on what should form the theoretical core of the undergraduate intermediate macroeconomic course. In determining how to deal with the Keynesian/classical divide, instructors must decide whether to follow the modern approach of building macroeconomic relationships from micro foundations, or to use the traditional approach based on aggregate models of the macroeconomy. In this article, the authors discuss the advantages and shortcomings of each approach in the context of course objectives. Because there is significant heterogeneity in textbook coverage, the authors summarize some of the approaches taken in current intermediate-level textbooks, which should serve as a useful starting point for new instructors. The authors also discuss how each approach can be extended to analyze the recent recession in the United States.
Keywords
aggregate demand/aggregate supply, intermediate macroeconomics, IS/LM, microfound- ations, neoclassical, new-Keynesian
Volume
44
Issue
1
First Page
74
Last Page
90
DOI
10.1080/00220485.2013.740399
ISSN
00220485
Recommended Citation
De Araujo, Pedro; O'Sullivan, Roisin; and Simpson, Nicole B., "What Should be Taught in Intermediate Macroeconomics?" (2013). Economics: Faculty Publications, Smith College, Northampton, MA.
https://scholarworks.smith.edu/eco_facpubs/60
Comments
Peer reviewed accepted manuscript.