Milton Friedman was a conservative economist known for his monetarist economic views and opposition to the military draft. He had an influential debate with General Westmoreland where he argued that draftees should be considered volunteers rather than "slaves". The tutorial covers macroeconomic concepts and instructs students to fully explain terms, show working, use diagrams to illustrate answers, and carefully format and source responses.

1. MACROECONOMICS
Tutorial 2
Raj.Chande@Bristol.ac.uk
Office Hours: Monday 2pm & Wednesday 10am

2. WHO WAS MILTON FRIEDMAN?
 http://www.youtube.com/watch?v=RWsx1X8PV_A
 Republican/Conservative darling
 But he was a conservative out of expedience
 “You‟re right, we did it. We‟re very sorry. But thanks
to you, we won‟t do it again.” Ben Bernanke
(current Fed chairman) on the Great Depression
 Virulently campaigned AGAINST the prohibition of
drugs… not your average „conservative‟
 He considered his role in the abolition of the draft to
be his finest achievement

3. FRIEDMAN & THE DRAFT
Mr. Westmoreland: “I do not want to command an
army of mercenaries.”
Mr. Friedman interrupted: "General, would you
rather command an army of slaves?"
Mr. Westmoreland: "I don't like to hear our patriotic
draftees referred to as slaves."
Mr. Friedman: "I don't like to hear our patriotic
volunteers referred to as mercenaries. If they are
mercenaries, then I, sir, am a mercenary professor,
and you, sir, are a mercenary general; we are
served by mercenary physicians, we use a
mercenary lawyer, and we get our meat from a
mercenary butcher."

4. BASIC STUFF
 Use cover sheets, fill them out properly
 Use a computer (as much as you can), use a dark
pen for other writing
 You guarantee zero if you don‟t answer. At least
explain why you‟re not answering, unless your
explanation is that you couldn‟t be bothered
 If you‟re not sure what the question is asking,
explain what interpretation/reservations
 Explaining your thought process will turn a 2:1 into
a 1st and a fail into a pass…
 CONVEY UNDERSTANDING

5. Q1)
 The answer is in your booklet (pg 11). Rewrite it.
 Make sure you define/explain EVERY term („real‟,
„income‟) etc
 Use Nigel‟s notation/definitions for as much as
possible. If he isn‟t marking your exam, one of us
will be and we‟ll be using his notation
 Introduce notation like this:
…income, Y, after deducting transfer payments, T.
or
…income (Y) after deducting transfer payments (T).

6. Q2)
 Patronize me, I won‟t be offended
 If you‟re using a formula for the first time, write it
down... (in your answer, not now)
APC = C/(Y-T)
 Then write each line of your working
 Then make clear your answer is your answer
 Don‟t assume I will fill in the gaps, spell it out for
me. Show me every step you took, like a really
boring person telling a story

7. Q3) A PICTURE TELLS 1000 WORDS
 A picture tells a thousand words
 I‟d definitely rather look at a picture than read a
thousand words on a Friday afternoon
 Label axes, levels… CA , CB
 Keep referring to the diagram in your answer

8. KEY POINTS
 Keynes: MPC the same for A and B, time does not
matter. I see money, I spend money
 Friedman: Key differences?
 SR v LR… hence we observe a pivot effect
 Smooth C, sure, but within limits.
A on a higher SR C function
MPC probably lowerfor B… why?
Which do we think is more plausible, K or F?

9. 4)
 Again, define what you think the question means
e.g. what does „determine‟ mean?
 More diagrams please, tables too
 Give yourself enough time to find the data, make
sure you source it
 Think about which data are the most descriptive
 Start taking this seriously. The ability to present
your work in a coherent and professional manner is
what employers are looking for, regardless of the
industry… and it takes practice.