Potential GDP and Economic Growth

一、MacroEconomic Approaches And Pathway

1、Classical macroeconomic is a body of theory about how a market economy works and why it experiences economic growth and fluctuation.

2、Keynesian macroeconomics is a body of theory about how a market economy works that stresses its instability and the need for active government intervention to achieve full employment and sustained economic growth

3、The new macroeconomic is a body of theory about how the economy works that is base on the view that macro outcomes depend on micro choices——the choicesof rational individuals and firms interacting in markets