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• Cover
• Title
• Copyright
• Contents
• List of “Doing Economics” Boxes
• List of Tables
• List of Figures
• Preface to the first edition
• Acknowledgments
• Part I Preliminary Topics
• 1 An Introduction to Macroeconomics
• 1.1 Methods of Analysis in Macroeconomics
• 1.2 What Macroeconomists Do: Building and Testing Models
• 1.3 Principles of Macroeconomic Analysis
• 1.4 Learning Macroeconomics
• 1.5 Chapter Organization
• 1.6 Questions for Study and Review
• Mathematical Appendix: Analytical Methods
• 2 Concepts and Measurement
• 2.1 National Income Accounting
• 2.2 Relationships Implied by NIPA Accounting
• 2.3 Essential Economic Concepts
• 2.4 Concluding Remarks
• 2.5 Questions for Study and Review
• Appendix: Compound Growth Rate Formulas
• 3 Business Cycle Measurement
• 3.1 The Business Cycle: A Definition
• 3.2 Properties of Macroeconomic Data
• 3.3 Serial Persistence and Comovement
• 3.4 Cyclical Indicators
• 3.5 Concluding Remarks
• 3.6 Questions for Study and Review
• Part II Microfoundations
• 4 Consumption
• 4.1 A Model of Household Behavior
• 4.2 How Consumption Responds to Changes in its Determinants
• 4.3 The Permanent Income Hypothesis
• 4.4 Ricardian Equivalence
• 4.5 A Simplified Consumption Model
• 4.6 Consumption and Saving Over the Life Cycle
• 4.7 Concluding Remarks
• 4.8 Questions for Study and Review
• 5 Investment
• 5.1 The Behavior of a Firm
• 5.2 Investment in Plant and Equipment
• 5.3 The Forward-Looking Nature of Investment
• 5.4 More on the User Cost of Capital
• 5.5 The Stock Market and Investment
• 5.6 Inventory Investment
• 5.7 Concluding Remarks
• 5.8 Questions for Study and Review
• 6 Government
• 6.1 The Role of Government
• 6.2 Government Expenditures and Tax Receipts
• 6.3 The Government Budget Constraint (GBC)
• 6.4 Financing Government Expenditures
• 6.5 Concluding Remarks
• 6.6 Questions for Study and Review
• 7 Money
• 7.1 Definitions and Uses of Money
• 7.2 The Demand for Money
• 7.3 The Supply of Money
• 7.4 The Money Market
• 7.5 The Velocity of Money
• 7.6 Concluding Remarks
• 7.7 Questions for Study and Review
• 8 The Labor Market
• 8.1 Labor Market Concepts and Data
• 8.2 The Demand for Labor
• 8.3 Labor Supply
• 8.4 The Market for Labor
• 8.5 Inflexible Real Wages
• 8.6 Concluding Remarks`
• 8.7 Questions for Study and Review
• Part III Aggregate Economic Models
• 9 Classical Models of the Aggregate Economy
• 9.1 Potential GDP
• 9.2 The Demand for Goods and the Classical Model of the Economy
• 9.3 Exercises Using the Classical Model
• 9.4 Intertemporal Productive Efficiency
• 9.5 Intertemporal Efficiency and Welfare
• 9.6 Economic Growth: An Introduction
• 9.7 Concluding Remarks
• 9.8 Questions for Study and Review
• 10 Economic Growth
• 10.1 Growth Accounting
• 10.2 The Solow Growth Model
• 10.3 The Empirical Implications of the Solow Model
• 10.4 Growth without Convergence
• 10.5 An Extended Solow Model
• 10.6 The Role of Government
• 10.7 Concluding Remarks
• 10.8 Questions for Study and Review
• Appendix: Deriving the Growth Accounting Formula
• 11 Aggregate Demand
• 11.1 The Goods Market
• 11.2 The Financial Market
• 11.3 Aggregate Demand
• 11.4 The Business Cycle: An Introduction
• 11.5 Concluding Remarks
• 11.6 Questions for Study and Review
• Appendix: Deriving the AD Schedule
• 12 The Business Cycle
• 12.1 The New Classical Model of Aggregate Supply
• 12.2 Shocks to Aggregate Supply
• 12.3 Keynesian Models of Aggregate Supply
• 12.4 Cyclical Fluctuations
• 12.5 Transitory Shocks to Aggregate Supply
• 12.6 Concluding Remarks
• 12.7 Questions for Study and Review
• Appendix: The New Classical and Keynesian Models of Aggregate Supply
• 13 Inflation, the Phillips Curve and Expectations
• 13.1 The Origin of Inflation
• 13.2 The Phillips Curve
• 13.3 The Phillips Curve and the AD-AS Model
• 13.4 Expectation Formation
• 13.5 Concluding Remarks
• 13.6 Questions for Study and Review
• Appendix: Forming a Rational Expectation
• 14 Macroeconomic Policy
• 14.1 Policy Goals
• 14.2 Issues Common to Monetary and Fiscal Policy
• 14.3 Monetary Policy
• 14.4 Fiscal Policy
• 14.5 Concluding Remarks
• 14.6 Questions for Study and Review
• Appendix: Policy Rules and the Aggregate Demand Schedule
• 15 The Open Economy
• 15.1 The Balance of Payments
• 15.2 The Market for Foreign Exchange
• 15.3 The Determinants of Nominal Exchange Rates
• 15.4 Open Economy Aggregate Models
• 15.5 The Open Economy IS Curve
• 15.6 The Open Economy Aggregate Demand Schedule
• 15.7 The Open Economy Macroeconomic Model
• 15.8 Concluding Remarks
• 15.9 Questions for Study and Review
• Appendix A: Uncovered Interest Parity
• Appendix B: The Open Economy Aggregate Demand Schedule
• Glossary
• Footnotes
• Index