Macroeconomics

by Gordon, Robert J.

• ISBN13: 9780321485519
• ISBN10: 0321485513
• Edition: 11th
• Format: Hardcover
• Copyright: 2009-01-01
• Publisher: Addison Wesley

Summary

Macroeconomicsis widely praised for its ability to present theory as a way of evaluating key macro questions, such as why some countries are rich and others are poor. Gordon makes extensive use of data, international examples, and case studies throughout, and theEleventh Editionincorporates critical developments in the field. New topics include the housing bubble and the role of housing wealth, the economic progress of China, recent discussions of growth theory, and the effect of oil prices on the economy. Introduction and Measurement:What Is Macroeconomics?; The Measurement of Income, Prices, and Unemployment.Income, Interest Rates, Policy, and the Open Economy:Spending, Income, and Interest Rates; Monetary and Fiscal Policy in the IS-LM Model; National Saving, the Government Budget, Foreign Borrowing, and the Twin Deficits; International Trade, Exchange Rates, and Macroeconomic Policy.Aggregate Demand, Aggregate Supply, Unemployment and Inflation:Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy; Inflation: Its Causes and Cures; The Goals of Stabilization Policy: Low Inflation and Low Unemployment.Macroeconomics in the Long Run: Growth and Public Finance:The Theory of Economic Growth; The Big Questions of Economic Growth; The Government Budget, the Public Debt, and Social Security.Stabilization Policy in an Open Economy:Money and Financial Markets; Stabilization Policy in the Closed and Open Economy.Stability and Instability in the Private Economy:The Economics of Consumption Behavior; The Economics of Investment Behavior.Debates at the Macroeconomic Frontier:New Classical Macro Confronts New Keynesian Macro; Conclusion: Where We Stand. For all readers interested in macroeconomics.

Table of Contents

Introduction and Measurement

What Is Macroeconomics?

How Macroeconomics Affects Our Everyday Lives

Defining Macroeconomics

Actual and Natural Real GDP

Macroeconomics in the Short Run and Long Run

Case Study: A Century of Business Cycles

Macroeconomics at the Extremes

Taming Business Cycles: Stabilization Policy

The Internationalization of Macroeconomics

The Measurement of Income, Prices, and Unemployment

Why We Care About Income

The Circular Flow of Income and Expenditure

What Transactions Should Be Included in Income and Expenditure?

Components of Expenditure

The Magic Equation and the Twin Deficits

How Much Income Flows from Business Firms to Households?

Nominal GDP, Real GDP, and the GDP Deflator

Measuring Unemployment

Case Study: Conflicting Measurements: Was the 2002-04 Recover Jobless or Not?

How We Measure Real GDP and the Inflation Rate

Income , Interest Rates, Policy, and the Open Economy

Spending, Income, and Interest Rates

Business Cycles and the Theory of Income Determination

Income Determination, Unemployment, and the Price Level

Planned Expenditure

Case Study: Why Did U.S. Saving Almost Vanish in This Decade?

The Economy In and Out of Equilibrium

The Multiplier Effect

Sources of Shifts in Planned Spending

How Can Monetary Policy Affect Planned Spending?

The Relation of Autonomous Planned Spending to the Interest Rate

The IS Curve

Conclusion: The Missing Relation

Allowing for Income Taxes and Income-Dependent Net Exports

Monetary and Fiscal Policy in the IS-LM Model

Introduction: The Power of Monetary and Fiscal Policy

Why People Use Money

Income, the Interest Rate, and the Demand for Money

The LM Curve

The IS Curve Meets the LM Curve

Monetary Policy in Action

How Fiscal Expansion Can Crowd Out Investment

Strong and Weak Effects of Monetary Policy

Strong and Weak Effects of Fiscal Policy

Using Fiscal and Monetary Policy Together

The Elementary Algebra of the IS-LM Model

The Government Budget, Foreign Borrowing, and the Twin Deficits

Introduction

The Pervasive Effects of the Government Budget

Case Study: The Government Budget In Historical Perspective

The Structural Budget

National Saving and the Consequences of the Government Budge

Case Study: How the Deficits Rejoined to Become Twins

The Current Account and the Balance of Payments

Conclusion: Solutions to the National Saving Squeeze

International Trade, Exchange Rates, and Macroeconomic Policy

Introduction

Exchange Rates

The Market for Foreign Exchange

Real Exchange Rates and Purchasing Power Parity

Exchange Rate Systems

Case Study: Asia Intervenes with Buckets to Buy Dollars and Finance the U.S. Current Account Deficit How Long Can This Continue?

Determinants of Net Exports

The Real Exchange Rate and Interest Rate

Effects of Monetary and Fiscal Policy with Fixed and Flexible Exchange Rates

Conclusion: Economic Policy in the Open Economy

Aggregate Demand, Aggregate Supply, Unemployment and Inflation

Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy

Combining Aggregate Demand with Aggregate Supply

Flexible Prices and the AD Curve

Shifting the Aggregate Demand Curve with Monetary and Fiscal Policy

Alternative Shapes of the Short-Run Aggregate Supply Curve

The Short-Run Aggregate Su

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