Macroeconomic Policies: Effects and Adjustments

This lecture covers the impact of a permanent increase in government spending on the exchange rate and output, the XX schedule showing CA balance levels, the slope of the XX curve, and the long-run adjustment to a permanent increase in the money supply. It also discusses the global business environment, the effects of temporary fiscal and monetary expansions, and the U.S. economic slowdown of 2001, including its shocks, policy responses, and recovery.