Aye, it’s time for a recap

Rapper Kristen in the house,

Now let’s hit it!

 

Y’all take notes from my amigo Hayek.

Say’s new law makes us more efficient

Creating more companies to lower the prices while

Trickledown theory is our best friend, you see

Money from producers practically trickle, trickle down, thus

 

US economy going up and down

Turn down those prices cuz we’re in a recession

Consumers

Steer the volatile market while

Hayek and Keynes still hold our helpless, little hands

 

Aye. Now let’s talk about the new guy, John M. Keynes

He thinks he’s a big shot with his cool Keynesian ideas

According to Keynes, Say’s law is a myth!

Sticky, sticky prices are why prices don’t drop and

Government officials are our awesome BFF

Since they aid in our recovery from a rundown recession, yo!

 

US economy going up and down

Turn down those prices cuz we’re in a recession

Consumers

Steer the volatile market while

Hayek and Keynes still hold our helpless, little hands

 

Aggregate Demand,

It’s all about the spenders, see

C, I, G, X equals Y

When the cash flows in, everyone is happy.

Wealth, Exports and Interest galore

All of these factors make or break the equi(librium), yo!

 

Now, time for SRAS

Productivity and prices is the key, you see

Cost of production only affects the producers and

Shifts the curve to the left or to the right

But remember we’re analyzing the overall economy, hey!

 

Money, money, money runs the cycle, okay

A unit of account or a store of value, what?

Fiat money doesn’t have intrinsic value

Since paper money is a government decree

Telling us its worth, not like silver or gold.

Liquidation

It’s easy as one, two, three

All your extra assets must sell, sell, sell.

Currency and deposits are in the hands of the public

Allowing us to make our direct payments as needed

Hold up, what is the “Federal Reserve”

Well, they’re in charge of the federal money, so

There are 12 districts and Janet Yellen to

Stabilize and control the economy, yeah!

 

US economy going up and down

Turn down those prices cuz we’re in a recession

Consumers

Steer the volatile market while

Hayek and Keynes still hold our helpless, little hands

 

Aye, that’s the rap

Peace!