We covered a lot macroeconomics this semester: growth theory, consumption, investment, real business cycle, Keynesian theory of the business cycle, unemployment, fiscal policy, and monetary policy. The assumptions behind so many of the models were just so unrealistic; it seemed absurd to be solving problems to see the conclusions ourselves.  I thought I’d outline a couple of the more counterintuitive things we learned and the implausible conclusions that they implied.

Neo-classical Growth Th...