Students come to study macroeconomics with a strong interest in understanding events and developments in the economy. We try to capture that interest an develop students’ economic intuition and understanding in this text. We present macroeconomics in a way that is modern and based in the real world of business and economic policy. And we believe we achieved this presentation without making the analysis more difficult. We avoid the recent trend of using simplified versions of intermediate models, which are often more detailed and more complex than is necessary to allow students to understand the basic macroeconomic issues. Instead, we use a more realistic version of the familiar aggregate demand-aggregate supply model to analyze short-run fluctuations and monetary and fiscal policy. We also avoid the “dueling schools of thought” approach often used to teach macroeconomics at the principles level. We emphasize the many areas of macroeconomics where most economists agree, which gives students a better context for understanding those issues where disagreements have not yet been resolved. And we present throughout real business and policy situations to develop students’ intuition.
Part 1: Introduction
Part 2: Firms in the Domestic and International Economies
Part 3: Macroeconomic Foundations and Long-Run Growth
Part 4: Short-Run Flucuations
Part 5: Monetary and Fiscal Policy
Part 6: The International Economy