Macroeconomics 2E – Table of contents

PART 1: INTRODUCTION TO ECONOMICS

1. Observing and explaining the economy
Foundations of modern economics
The two branches of economics
Observations: what economists endeavour to explain
Economic models
Using economics for public economic policy

2. Scarcity, choice and economic interaction
Scarcity, choice and interaction for individuals
Scarcity and choice for the economy as a whole
Market economies

3. The supply and demand model
Demand
Supply
Market equilibrium: combining supply and demand
Interference with market prices

4. Elasticity and its uses
The price elasticity of demand
The price elasticity of supply
Applications of elasticity

PART 2: PRINCIPLES OF MACROECONOMICS

5. A preview of macroeconomics
Real GDP over time
Jobs, inflation and interest rates
Macroeconomic theory and policy

6. Measuring the macroeconomy
Measuring GDP
Saving, investment, net exports
Real GDP and nominal GDP
Shortcomings of the GDP measure
International comparisons of GDP

7. Investment and the spending allocation model
Investment and the accumulation of productive capital
Investment as a share of GDP
The effect of interest rates on spending shares
Determining the equilibrium interest rate
Shifts in government expenditure and consumption
The saving investment approach
Determination of government’s share of GDP

8. Unemployment and employment
Unemployment and other labour market indicators
The nature of unemployment
Explaining unemployment and employment trends

9. Productivity and economic growth
Labour and capital without technology
Labour and capital with technology
The growth accounting formula
Technology policy

10. Money and inflation
What is money?
The central bank and the banks: creators of money
How the central bank controls the money supply: currency plus deposits
Money, growth and inflation
Inflation: effects on unemployment and productivity growth

PART 3: ECONOMIC FLUCTUATIONS AND MACROECONOMIC POLICY

11. The nature and causes of economic fluctuations
Changes in aggregate demand first lead to changes in production
Forecasting real GDP
The response of consumption to income
Finding real GDP when consumption and income move together
Spending balance and departures of real GDP from potential GDP

12. The multiplier
How to find the multiplier
The size of the multiplier
A key international issue: net exports depend on income
The multiplier for a tax change

13. The economic fluctuations model
The aggregate demand curve
The inflation adjustment line
Combining the AD curve and the IA line

14. Using the economic fluctuations model
Changes in government expenditure
Changes in monetary policy
Price shocks
Combining different scenarios

15. Fiscal policy
The government budget
Countercyclical fiscal policy
The structual versus the cyclical surplus

16. Monetary policy
Central banks independence
Money demand, money supply and the interest rate
The effect of open market operations
Alternative monetary policies
Gains from credibility

17. The balance of payments and exchange rate policy
Balance of trade around the world
Exchange rate determination
Fixed exchange rate systems
Fixed exchange rates and international independence

18. Macroeconomic debates
Schools of thought in macroeconomics
Policy debates: An Australian example

PART 4: ECONOMIC DEVELOPMENT AND INTERNATIONAL TRADE

19. Economic development
Catching up or not?
Economic development
Spreading and using technology
Increasing capital per worker

20. The gains from international trade
Recent trends in international trends
Adam Smith and free trade
Comparative advantage
Reasons for comparative advantage
The transition to free trade

21. International trade policy
The effects of trade restrictions
A brief history of trade restrictions
Arguments for trade barriers
How to reduce trade barriers


	PART 1: INTRODUCTION TO ECONOMICS 1. Observing and explaining the economy Foundations of modern economics The two branches of economics Observations: what economists endeavour to explain Economic models Using economics for public economic policy 2. Scarcity, choice and economic interaction Scarcity, choice and interaction for individuals Scarcity and choice for the economy as a whole Market economies 3. The supply and demand model Demand Supply Market equilibrium: combining supply and demand Interference with market prices 4. Elasticity and its uses The price elasticity of demand The price elasticity of supply Applications of elasticity PART 2: PRINCIPLES OF MACROECONOMICS 5. A preview of macroeconomics Real GDP over time Jobs, inflation and interest rates Macroeconomic theory and policy 6. Measuring the macroeconomy Measuring GDP Saving, investment, net exports Real GDP and nominal GDP Shortcomings of the GDP measure International comparisons of GDP 7. Investment and the spending allocation model Investment and the accumulation of productive capital Investment as a share of GDP The effect of interest rates on spending shares Determining the equilibrium interest rate Shifts in government expenditure and consumption The saving investment approach Determination of government’s share of GDP 8. Unemployment and employment Unemployment and other labour market indicators The nature of unemployment Explaining unemployment and employment trends 9. Productivity and economic growth Labour and capital without technology Labour and capital with technology The growth accounting formula Technology policy 10. Money and inflation What is money? The central bank and the banks: creators of money How the central bank controls the money supply: currency plus deposits Money, growth and inflation Inflation: effects on unemployment and productivity growth PART 3: ECONOMIC FLUCTUATIONS AND MACROECONOMIC POLICY 11. The nature and causes of economic fluctuations Changes in aggregate demand first lead to changes in production Forecasting real GDP The response of consumption to income Finding real GDP when consumption and income move together Spending balance and departures of real GDP from potential GDP 12. The multiplier How to find the multiplier The size of the multiplier A key international issue: net exports depend on income The multiplier for a tax change 13. The economic fluctuations model The aggregate demand curve The inflation adjustment line Combining the AD curve and the IA line 14. Using the economic fluctuations model Changes in government expenditure Changes in monetary policy Price shocks Combining different scenarios 15. Fiscal policy The government budget Countercyclical fiscal policy The structual versus the cyclical surplus 16. Monetary policy Central banks independence Money demand, money supply and the interest rate The effect of open market operations Alternative monetary policies Gains from credibility 17. The balance of payments and exchange rate policy Balance of trade around the world Exchange rate determination Fixed exchange rate systems Fixed exchange rates and international independence 18. Macroeconomic debates Schools of thought in macroeconomics Policy debates: An Australian example PART 4: ECONOMIC DEVELOPMENT AND INTERNATIONAL TRADE 19. Economic development Catching up or not? Economic development Spreading and using technology Increasing capital per worker 20. The gains from international trade Recent trends in international trends Adam Smith and free trade Comparative advantage Reasons for comparative advantage The transition to free trade 21. International trade policy The effects of trade restrictions A brief history of trade restrictions Arguments for trade barriers How to reduce trade barriers











		TABLE OF CONTENTS