Macroeconomics: Theory Through Applications
v. 1.0
Table of Contents
Licensing Information
Preface
Chapter 1: What Is Economics?
Microeconomics in a Fast-Food Restaurant
Macroeconomics in a Fast-Food Restaurant
What Is Economics, Really?
End-of-Chapter Material
Chapter 2: Macroeconomics in Action
Chapter Introduction
Behind the Screens
Between News and Policy: The Framework of Macroeconomics
End-of-Chapter Material
Chapter 3: The State of the Economy
Measuring Economic Activity
Measuring Prices and Inflation
The Circular Flow of Income
The Meaning of Real GDP
End-of-Chapter Material
Chapter 4: The Interconnected Economy
Chapter Introduction
Housing Supply and Demand
Comparative Statics: Changes in the Price of Housing
Three Important Markets
Linkages across Markets
End-of-Chapter Material
Chapter 5: Globalization and Competitiveness
The Production of Real GDP
Labor in the Aggregate Production Function
Physical Capital in the Aggregate Production Function
Other Inputs in the Aggregate Production Function
Accounting for Changes in GDP
Globalization and Competitiveness Revisited
End-of-Chapter Material
Chapter 6: Global Prosperity and Global Poverty
Chapter Introduction
The Single-Person Economy
Four Reasons Why GDP Varies across Countries
The Accumulation of Physical Capital
Balanced Growth
The Role of International Institutions in Promoting Growth
End-of-Chapter Material
Chapter 7: The Great Depression
Chapter Introduction
What Happened during the Great Depression?
The Great Depression: A Decrease in Potential Output?
The Components of GDP during the Great Depression
The Great Depression: A Decrease in Aggregate Spending?
Policy Interventions and the Great Depression
End-of-Chapter Material
Chapter 8: Jobs in the Macroeconomy
Chapter Introduction
Unemployment
Job and Worker Flows
Hours Worked
The Government and the Labor Market
End-of-Chapter Material
Chapter 9: Money: A User’s Guide
Chapter Introduction
What Is Money?
Using Money to Buy Goods and Services
Using Money to Buy Other Monies: Exchange Rates
Using Money to Buy Assets: Interest Rates
End-of-Chapter Material
Chapter 10: Understanding the Fed
Chapter Introduction
Central Banks
The Monetary Transmission Mechanism
Monetary Policy, Prices, and Inflation
Monetary Policy in the Open Economy
The Tools of the Fed
The Fed in Action
End-of-Chapter Material
Chapter 11: Inflations Big and Small
Chapter Introduction
The Quantity Theory of Money
Facts about Inflation and Money Growth
The Causes of Inflation
The Costs of Inflation
Policy Remedies
End-of-Chapter Material
Chapter 12: Income Taxes
Chapter Introduction
Basic Concepts of Taxation
The Kennedy Tax Cut of 1964
Income Taxes and Saving
The Reagan Tax Cut
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Chapter 13: Social Security
Chapter Introduction
Individual and Government Perspectives on Social Security
A Model of Consumption
Social Security in Crisis?
The Benefits and Costs of a Social Security System
Social Security in the Real World
End-of-Chapter Material
Chapter 14: Balancing the Budget
Chapter Introduction
Deficits and Debt
The Causes of Budget Deficits
The Benefits of Deficits
The Costs of Deficits
The Ricardian Perspective
End-of-Chapter Material
Chapter 15: The Global Financial Crisis
Chapter Introduction
The Financial Crisis in the United States
From Financial Crisis to Recession
The Crisis in Europe and the Rest of the World
Currency Crises
End-of-Chapter Material
Chapter 16: Macroeconomics Toolkit
Chapter Introduction
The Labor Market
Choices over Time
Discounted Present Value
The Credit (Loan) Market (Macro)
Correcting for Inflation
Supply and Demand
Comparative Advantage
Comparative Statics
Nash Equilibrium
Foreign Exchange Market
Growth Rates
Mean and Variance
Correlation and Causality
The Fisher Equation: Nominal and Real Interest Rates
The Aggregate Production Function
The Circular Flow of Income
Growth Accounting
The Solow Growth Model
The Aggregate Expenditure Model
Price Adjustment
Consumption and Saving
The Government Budget Constraint
The Life-Cycle Model of Consumption
Aggregate Supply and Aggregate Demand
The IS-LM Model