Having read the chapter, you should be able to do each of the following:
- Trace the historical development of the system of regulation in the United States. Discuss efficiency and equity as these concepts apply to regulation, and give examples of policies based on each concept.
- Discuss the precise ways that government promotes the interests of business, labor, and agriculture.
- Discuss the government’s role in protecting the environment.
- Discuss fiscal policy as a means of maintaining a stable economy. Distinguish between supply-side and demand-side theory.
- Describe monetary policy as a means of maintaining a stable economy. Describe how the Federal Reserve influences the economy. Note how the development of monetarism as a theory of national economic management has affected the role of the Fed.
