Macroeconomics

Conclusion

Economists and policymakers must deal with ambiguity. The current state of

macroeconomics offers many insights, but it also leaves many questions open.

The challenge for economists is to find answers to these questions and to expand

our knowledge. The challenge for policymakers is to use the knowledge we now

have to improve economic performance. Both challenges are formidable, but nei-

ther is insuperable.

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More on the Microeconomics Behind Macroeconomics

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example, an income tax system that automatically

reduces taxes when income falls.