13.7 Summary

Understanding what causes economic fluctuations can help you predict the likelihood of experiencing inflation or unemployment. Understanding how countercyclical macroeconomic stabilization policies work can help you make informed decisions about the likely outcomes of proposed government economic policies. Whether you are making decisions as a business manager, planning your own financial and economic future, or making decisions as a voter, your understanding of how the overall economy works, and of how outcomes of economic fluctuations and macroeconomic stabilization policies are likely to affect you, will undoubtedly improve your decisions and your future life.