Bravo. That is the way to teach!
Peter Dorman wrote:
> Just to show how antidiluvian I am, when I last taught macro in the early 90s I
> used pass-through analysis. I reasoned out with the students the factors that
> would increase the ability of firms to pass costs through to prices and workers
> to pass prices through to wages. Then the ceteris paribus relationship between
> real aggregate demand (in the Keynesian sense) and the rate of inflation
> follows. By the way, I would let students guide me in their analysis each time
> I did this, and the exact list of factors would change slightly from class to
> class (although it always included unemployment and capacity utilization). I
> never worried about it. The goal, after all, is to help students acquire the
> ability to reason their way through macro after they've forgotten everything
> they tried to memorize for their exams.
>
> Peter
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
