Introduction
Credits
About the Author
Preface
Supplements and Media
Chapter Introduction
What Macroeconomists Study
How Economists Think
How This Book Proceeds
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
Measuring the Value of Economic Activity: Gross Domestic Product
Measuring the Cost of Living: The Consumer Price Index
Measuring Joblessness: The Unemployment Rate
Conclusion: From Economic Statistics to Economic Models
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
What Determines the Total Production of Goods and Services?
How Is National Income Distributed to the Factors of Production?
What Determines the Demand for Goods and Services?
What Brings the Supply and Demand for Goods and Services into Equilibrium?
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
What Is Money?
The Role of Banks in the Monetary System
How Central Banks Influence the Money Supply
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
The Quantity Theory of Money
Seigniorage: The Revenue from Printing Money
Inflation and Interest Rates
The Nominal Interest Rate and the Demand for Money
The Social Costs of Inflation
Hyperinflation
Conclusion: The Classical Dichotomy
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
APPENDIX: The Cagan Model: How Current and Future Money Affect the Price Level
MORE PROBLEMS AND APPLICATIONS
Chapter Introduction
The International Flows of Capital and Goods
Saving and Investment in a Small Open Economy
Exchange Rates
Conclusion: The United States as a Large Open Economy
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
APPENDIX: The Large Open Economy
MORE PROBLEMS AND APPLICATIONS
Chapter Introduction
Job Loss, Job Finding, and the Natural Rate of Unemployment
Job Search and Frictional Unemployment
Real-Wage Rigidity and Structural Unemployment
Labor-Market Experience: The United States
Labor-Market Experience: Europe
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
The Accumulation of Capital
The Golden Rule Level of Capital
Population Growth
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
Technological Progress in the Solow Model
From Growth Theory to Growth Empirics
Policies to Promote Growth
Beyond the Solow Model: Endogenous Growth Theory
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
APPENDIX: Accounting for the Sources of Economic Growth
MORE PROBLEMS AND APPLICATIONS
Chapter Introduction
The Facts About the Business Cycle
Time Horizons in Macroeconomics
Aggregate Demand
Aggregate Supply
Stabilization Policy
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
The Goods Market and the IS Curve
The Money Market and the LM Curve
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
Explaining Fluctuations With the IS-LM Model
IS-LM as a Theory of Aggregate Demand
The Great Depression
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
The Mundell-Fleming Model
The Small Open Economy Under Floating Exchange Rates
The Small Open Economy Under Fixed Exchange Rates
Interest Rate Differentials
Should Exchange Rates Be Floating or Fixed?
From the Short Run to the Long Run: The Mundell-Fleming Model With a Changing Price Level
A Concluding Reminder
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
APPENDIX: A Short-Run Model of the Large Open Economy
MORE PROBLEMS AND APPLICATIONS
Chapter Introduction
The Basic Theory of Aggregate Supply
Inflation, Unemployment, and the Phillips Curve
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
APPENDIX: The Mother of All Models
MORE PROBLEMS AND APPLICATIONS
Chapter Introduction
Elements of the Model
Solving the Model
Using the Model
Two Applications: Lessons for Monetary Policy
Conclusion: Toward DSGE Models
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
John Maynard Keynes and the Consumption Function
Irving Fisher and Intertemporal Choice
Franco Modigliani and the Life-Cycle Hypothesis
Milton Friedman and the Permanent-Income Hypothesis
Robert Hall and the Random-Walk Hypothesis
David Laibson and the Pull of Instant Gratification
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
Business Fixed Investment
Residential Investment
Inventory Investment
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
Should Policy Be Active or Passive
Should Policy Be Conducted by Rule or by Discretion
Conclusion: Making Policy in an Uncertain World
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
APPENDIX: Time Inconsistency and the Tradeoff Between Inflation and Unemployment
MORE PROBLEMS AND APPLICATIONS
Chapter Introduction
The Size of the Government Debt
Problems in Measurement
The Traditional View of Government Debt
The Ricardian View of Government Debt
Other Perspectives on Government Debt
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
What Does the Financial System Do?
Financial Crises
Conclusion
Summary
KEY CONCEPTS
QUESTIONS FOR REVIEW
PROBLEMS AND APPLICATIONS
Chapter Introduction
The Four Most Important Lessons of Macroeconomics
The Four Most Important Unresolved Questions of Macroeconomics
Conclusion