Macroeconomics
Section 1
Basic Economic Concepts 1
Module 1 The Study of Economics 2
Module 2 Introduction to Macroeconomics 10
Module 3 The Production Possibilities Curve Model 16
Module 4 Comparative Advantage and Trade 23
Appendix Graphs in Economics 34
Section 2
Supply and Demand 47
Module 5 Supply and Demand: Introduction and Demand 48
Module 6 Supply and Demand: Supply and Equilibrium 59
Module 7 Supply and Demand: Changes in Equilibrium 71
Module 8 Supply and Demand: Price Controls (Ceilings
and Floors) 77
Module 9 Supply and Demand: Quantity Controls 88
Section 3
Measurement of Economic Performance 101
Module 10 The Circular Flow and Gross Domestic
Product 102
Module 11 Interpreting Real Gross Domestic Product 112
of Payments Module 41Capital Flows and the Balance
Unemployment 118
Module 13 The Causes and Categories of Unemployment 126
Module 14 Inflation: An Overview 134
Module 15 The Measurement and Calculation of Inflation 142
Section 4
National Income and Price Determination 157
Module 16 Income and Expenditure 158
Module 17 Aggregate Demand: Introduction and
Determinants 172
Module 18 Aggregate Supply: Introduction and
Determinants 179
Module 19 Equilibrium in the Aggregate Demand—
Aggregate Supply Model 190
Module 20 Economic Policy and the Aggregate
Demand—Aggregate Supply Model 199
Module 21 Fiscal Policy and the Multiplier 209
Section 5
Financial Sector 221
Module 22 Saving, Investment, and the Financial System 222
Module 23 Definition and Measurement of Money 231
Module 24 The Time Value of Money 237
Module 25 Banking and Money Creation 243
Module 26 The Federal Reserve System—History and
Structure 253
Module 27 The Federal Reserve System—Monetary
Policy 262
Module 42 The Foreign Exchange Market
Module 29 The Market for Loanable Funds 277
Section 6
Inflation, Unemployment, and Stabilization
Policies 295
Module 30 Long-run Implications of Fiscal Policy:
Deficits and the Public Debt 296
Module 31 Monetary Policy and the Interest Rate 307
Module 32 Money, Output, and Prices in the Long Run 315
Module 33 Types of Inflation, Disinflation, and
Deflation 321
Module 34 Inflation and Unemployment:
The Phillips Curve 331
Module 35 History and Alternative Views of
Macroeconomics 343
Module 36 The Modern Macroeconomic Consensus 355
Section 7
Economic Growth and Productivity 367
Module 37 Long-run Economic Growth 368
Module 38 Productivity and Growth 376
Module 39 Growth Policy: Why Economic Growth
Rates Differ 387
Module 40 Economic Growth in Macroeconomic
Models 398
Brief Contents
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