Veseth Introductory Macroeconomics

2. Auflage 2014
ISBN: 978-1-4832-5768-6
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 426 Seiten, Web PDF

Introductory Macroeconomics, Second Edition deals with national economic issues, such as unemployment, inflation, the aggregate demand-aggregate supply model of macroeconomics, government economic policy, exchange, rates, international trade, and finance. The book examines national economic problems, economic goals, the role markets play in the economy, price control, unemployment, and inflation. By using the Phillips curve trade-off, the text notes that inflation increases the demand for labor. In the long term, according to the long-run Phillips curve, increased inflation does not actually lessen unemployment levels (known as the natural unemployment rate hypothesis). The text also examines whether minimum wage laws are necessary (to fight poverty, prevent exploitation) or cause poverty (in which the imposition of minimum wage results in lower demand for unskilled labor). The book notes that politics and unions favor minimum wage laws. The poor, uneducated, and unskilled laborers are left out. The text also tackles goals and trade-offs: for example, that economic growth suffers from both inflation and unemployment, or the trade-off that preventing unemployment only results in worse inflation problems. Economists, sociologists, professors in economics, or policy makers involved in economic and social development will find the text valuable.

Autoren/Hrsg.

Veseth, Michael

Inhaltsverzeichnis

1;Front Cover;1
2;Introductory Macroeconomics;4
3;Copyright Page;5
4;Table of Contents;6
5;PREFACE;14
6;TO THE INSTRUCTOR;18
7;PART I: TOOLS AND PROBLEMS;26
7.1;CHAPTER 1. MACROECONOMIC PROBLEMS;28
7.1.1;What Is Economics?;29
7.1.2;Macroeconomic Goals and Problems;32
7.1.3;The Great Depression;34
7.1.4;The 1940s: War and Inflation;35
7.1.5;The 1950s: Business Cycles;36
7.1.6;The 1960s: The New Economics;37
7.1.7;The Phillips Curve;38
7.1.8;The 1970s: Stagflation;40
7.1.9;What Happened to the Phillips Curve?;42
7.1.10;The 1980s and Beyond;42
7.1.11;ECONOMIC CONTROVERSY;43
7.1.12;SUMMARY;45
7.1.13;DISCUSSION QUESTIONS;46
7.1.14;TEST YOURSELF;47
7.1.15;SUGGESTIONS FOR FURTHER READING;48
7.2;CHAPTER 2. SUPPLY AND DEMAND;50
7.2.1;The Market;51
7.2.2;The Idea of Demand;52
7.2.3;The Demand Curve;55
7.2.4;Shifts in Demand;56
7.2.5;The Idea of Supply;58
7.2.6;The Supply Curve;60
7.2.7;Shifts in Supply;62
7.2.8;The Market at Work;64
7.2.9;Applications of Supply and Demand;66
7.2.10;Inflation: A Preview;69
7.2.11;Review of Market Actions;71
7.2.12;ECONOMIC CONTROVERSY;73
7.2.13;SUMMARY;75
7.2.14;DISCUSSION QUESTIONS;76
7.2.15;TEST YOURSELF;77
7.2.16;SUGGESTIONS FOR FURTHER READING;78
7.3;CHAPTER 3. THE PROBLEM OFUNEMPLOYMENT;80
7.3.1;The Unemployment Record;81
7.3.2;The Unemployment Rate;81
7.3.3;Unemployment and the Unemployment Rate;83
7.3.4;Types of Unemployment;85
7.3.5;The Goal of Full Employment;87
7.3.6;How Serious Is the Unemployment Problem?;88
7.3.7;The Labor Market;92
7.3.8;Causes of Unemployment;93
7.3.9;Inflation and Unemployment;96
7.3.10;ECONOMIC CONTROVERSY;97
7.3.11;SUMMARY;99
7.3.12;DISCUSSION QUESTIONS;100
7.3.13;TEST YOURSELF;101
7.3.14;SUGGESTIONS FOR FURTHER READING;102
7.4;CHAPTER 4. UNDEESTANDING INFLATION;104
7.4.1;What Is Inflation?;105
7.4.2;The Inflation Record;105
7.4.3;Economic Effects of Inflation;107
7.4.4;The Power of Compound Inflation;112
7.4.5;Coping with Inflation;113
7.4.6;Measuring Inflation;114
7.4.7;Price Index Problems;116
7.4.8;Three Inflation Measures;117
7.4.9;Calculating Real Values;120
7.4.10;ECONOMIC CONTROVERSY;121
7.4.11;SUMMARY;123
7.4.12;DISCUSSION QUESTIONS;124
7.4.13;TEST YOURSELF;125
7.4.14;SUGGESTIONS FOR FURTHER READING;126
8;PART II: A SIMPLE MODEL OF THE ECONOMY;128
8.1;CHAPTER 5. MEASURING ECONOMIC ACTIVITY;130
8.1.1;Why Measure Economic Activity?;131
8.1.2;Gross National Product;132
8.1.3;Three Views of GNP;134
8.1.4;Take This with a Grain of Salt;136
8.1.5;Real Gross National Product;137
8.1.6;Are We Better Off Today than in Years Past?;138
8.1.7;Per Capita RGNP;139
8.1.8;International Comparisons;140
8.1.9;ECONOMIC CONTROVERSY;141
8.1.10;SUMMARY;143
8.1.11;DISCUSSION QUESTIONS;144
8.1.12;TEST YOURSELF;145
8.1.13;SUGGESTIONS FOR FURTHER READING;146
8.2;CHAPTER 6. KEYNESIAN AGGREGATE DEMAND;148
8.2.1;Depression Economics;149
8.2.2;Spending Creates Income;149
8.2.3;Macroeconomic Equilibrium;152
8.2.4;Is Equilibrium Good?;152
8.2.5;What Caused the Great Depression?;153
8.2.6;Depression Economic Policies;153
8.2.7;Inflation and Unemployment;154
8.2.8;Four Components of Aggregate Demand;155
8.2.9;The Aggregate Demand Curve;158
8.2.10;ECONOMIC CONTROVERSY;161
8.2.11;SUMMARY;162
8.2.12;DISCUSSION QUESTIONS;163
8.2.13;TEST YOURSELF;164
8.2.14;SUGGESTIONS FOR FURTHER READING;165
8.2.15;APPENDIX;165
8.3;CHAPTER 7. AGGREGATE SUPPLY AND THE ECONOMY;172
8.3.1;Aggregate Supply;173
8.3.2;The Aggregate Supply Curve;176
8.3.3;Shifts in the Aggregate Supply Curve;179
8.3.4;Macroeconomic Equilibrium;181
8.3.5;Adjusting to Equilibrium;182
8.3.6;Leading Indicators;184
8.3.7;Inflation and Unemployment;185
8.3.8;That Old-Time Religion;187
8.3.9;Wage and Price Controls;189
8.3.10;Indexation;190
8.3.11;Increasing Aggregate Supply;191
8.3.12;Winners and Losers from Economic Policies;193
8.3.13;ECONOMIC CONTROVERSY;194
8.3.14;SUMMARY;196
8.3.15;DISCUSSION QUESTIONS;197
8.3.16;TEST YOURSELF;198
8.3.17;SUGGESTIONS FOR FURTHER READING;199
8.4;CHAPTER 8. FISCAL POLICY;202
8.4.1;The Economics Role of Government;203
8.4.2;Tools of Fiscal Policy;204
8.4.3;Multiplier Analysis;204
8.4.4;Tax and Transfer Multipliers;207
8.4.5;Multipliers and Government Policy;209
8.4.6;Government and the Economy;210
8.4.7;Multipliers in the Real World;212
8.4.8;Government Spending Policies;213
8.4.9;Different Types of Taxes;213
8.4.10;Major United States Taxes;214
8.4.11;The Total Tax Burden;218
8.4.12;Tax Expenditures;218
8.4.13;Automatic Stabilizers;219
8.4.14;Advantages and Disadvantages of Fiscal Policies;220
8.4.15;Deficit Spending and the National Debt;221
8.4.16;ECONOMIC CONTROVERSY;223
8.4.17;SUMMARY;225
8.4.18;DISCUSSION QUESTIONS;226
8.4.19;TEST YOURSELF;227
8.4.20;SUGGESTIONS FOR FURTHER READING;228
9;PART III: MONEY, CREDIT, AND THE ECONOMY;230
9.1;CHAPTER 9. MONEY AND BANKING;232
9.1.1;A Financial Fable;233
9.1.2;The Money Supply;234
9.1.3;Money Substitutes;236
9.1.4;The Interest Rate;237
9.1.5;The Prime Interest Rate;240
9.1.6;Money and Banks;241
9.1.7;Fractional Reserve Banking;242
9.1.8;How Banks Create Money;244
9.1.9;The Fed;246
9.1.10;Open Market Operations;247
9.1.11;Reserve Requirement Policy;248
9.1.12;Discount Rate Policy;248
9.1.13;ECONOMIC CONTROVERSY;249
9.1.14;SUMMARY;250
9.1.15;DISCUSSION QUESTIONS;251
9.1.16;TEST YOURSELF;252
9.1.17;SUGGESTIONS FOR FURTHER READING;253
9.2;CHAPTER 10. CREDIT MARKETS AND MONETARY POLICY;256
9.2.1;The Stock Market;257
9.2.2;Commodity Markets;258
9.2.3;Bond Markets;259
9.2.4;Credit Markets;259
9.2.5;The Demand for Credit;260
9.2.6;The Credit Demand Curve;261
9.2.7;The Supply of Credit;263
9.2.8;The Credit Supply Curve;263
9.2.9;The Credit Market at Work;264
9.2.10;The Inflation Premium;267
9.2.11;High Interest Rates and Disintermediation;268
9.2.12;Investment and the Credit Market;270
9.2.13;Monetary Policy;271
9.2.14;The Pros and Cons of Monetary Policy;273
9.2.15;ECONOMIC CONTROVERSY;275
9.2.16;SUMMARY;276
9.2.17;DISCUSSION QUESTIONS;277
9.2.18;TEST YOURSELF;278
9.2.19;SUGGESTIONS FOR FURTHER READING;279
9.3;CHAPTER 11. MONETARY VERSUS FISCAL POLICY;282
9.3.1;Fighting Unemployment;283
9.3.2;Policy Options;285
9.3.3;Fighting Inflation;287
9.3.4;Fighting Stagflation;288
9.3.5;Financing Government Spending;289
9.3.6;Reviewing the Alternatives;293
9.3.7;Congress versus the Fed;294
9.3.8;ECONOMIC CONTROVERSY;297
9.3.9;SUMMARY;300
9.3.10;DISCUSSION QUESTIONS;300
9.3.11;TEST YOURSELF;301
9.3.12;SUGGESTONS FOR FURTHER READING;302
9.4;CHAPTER 12. THE CHALLENGE TO KEYNESIAN ECONOMICS;304
9.4.1;Keynesian Doctrine;305
9.4.2;Monetarist Theory;306
9.4.3;Modern Monetarist Theory;307
9.4.4;Friedman's Policy of Rules;310
9.4.5;The Monetarist Influence;312
9.4.6;Rational Expectations Theory;313
9.4.7;Rational Expectations Policies;314
9.4.8;Disequilibrium Theory;314
9.4.9;Supply-Side Economics;315
9.4.10;Who Is Right Here?;316
9.4.11;ECONOMIC CONTROVERSY;317
9.4.12;SUMMARY;319
9.4.13;DISCUSSION QUESTIONS;320
9.4.14;TEST YOURSELF;321
9.4.15;SUGGESTIONS FOR FURTHER READING;322
10;PART IV: INTERNATIONAL ECONOMICS;324
10.1;CHAPTER 13. INTERNATIONAL TRADE;326
10.1.1;Why Do Nations Trade?;327
10.1.2;The Law of Comparative Advantage;327
10.1.3;Gains from Trade;329
10.1.4;Economic Effects of Trade;330
10.1.5;Comparative Advantage in the Real World;331
10.1.6;Tariffs and Quotas;332
10.1.7;Who Pays the Tariff?;333
10.1.8;Arguments for Tariffs;336
10.1.9;Arguments against Tariffs;337
10.1.10;Customs Unions;338
10.1.11;Balance-of-Payments Accounts;338
10.1.12;Stages in the Balance of Payments;340
10.1.13;Is A Deficit Bad?;341
10.1.14;ECONOMIC CONTROVERSY;341
10.1.15;SUMMARY;343
10.1.16;DISCUSSION QUESTIONS;344
10.1.17;TEST YOURSELF;345
10.1.18;SUGGESTIONS FOR FURTHER READING;346
10.2;CHAPTER 14. THE FOREIGN-EXCHANGE MARKET;348
10.2.1;The Exchange Rate;349
10.2.2;The Foreign-Exchange Market;350
10.2.3;Demand for Francs;350
10.2.4;Demand for Dollars;351
10.2.5;Games Exchange Rates Play;353
10.2.6;Here Is Demand, Where Is Supply?;353
10.2.7;Exchange-Market Equilibrium;354
10.2.8;The Foreign-Exchange Market at Work;356
10.2.9;The Traveller's Paradox;363
10.2.10;Fixed Exchange Rates;364
10.2.11;ECONOMIC CONTROVERSY;364
10.2.12;SUMMARY;366
10.2.13;DISCUSSION QUESTIONS;367
10.2.14;TEST YOURSELF;367
10.2.15;SUGGESTIONS FOR FURTHER READING;369
10.3;CHAPTER 15. INTERNATIONAL ECONOMICS;372
10.3.1;Trade and the Economy;373
10.3.2;International Credit Movements;374
10.3.3;Eurodollars;376
10.3.4;Economic Policy with Flexible Exchange Rates;377
10.3.5;Economic Lessons for the 1980s;380
10.3.6;Economic Policy with Fixed Exchange Rates;380
10.3.7;Economic Lessons from the 1970s;382
10.3.8;Economic Policy with Intervention;382
10.3.9;Oil and International Economic Policy;383
10.3.10;Interest Rate Wars;384
10.3.11;ECONOMIC CONTROVERSY;384
10.3.12;SUMMARY;386
10.3.13;DISCUSSION QUESTIONS;387
10.3.14;TEST YOURSELF;387
10.3.15;SUGGESTIONS FOR FURTHER READING;389
10.4;CHAPTER 16. PROBLEMS, GOALS, AND TRADEOFFS;392
10.4.1;Goal 1: Full Employment;393
10.4.2;Goal 2: Stable Prices;393
10.4.3;Goal 3: Economic Growth;395
10.4.4;Other National Goals;395
10.4.5;International Economic Goals;397
10.4.6;Trade-Offs: Give Up a Goal?;398
10.4.7;Three Questions in Search of an Answer;398
10.4.8;Policy Problems;400
10.4.9;Questions? Answers! Answers? Questions;401
10.4.10;ECONOMIC CONTROVERSY;402
10.4.11;SUMMARY;403
10.4.12;DISCUSSION QUESTIONS;404
10.4.13;TEST YOURSELF;404
10.4.14;SUGGESTIONS FOR FURTHER READING;405
11;SUGGESTIONS FOR FURTHER READING;408
12;GLOSSARY;412
13;ANSWERS TO "TEST YOURSELF";420
14;INDEX;422