Macroeconomics : international edition

Description

Cover Macroeconomics Contents Part I Introduction and Measurement Issues Introduction What Is Macroeconomics? Gross Domestic Product, Economic Growth, and Business Cycles Macroeconomic Models Microeconomic Principles Disagreement in Macroeconomics What Do We Learn from Macroeconomic Analysis? Understanding Recent and Current Macroeconomic Events Chapter Summary Key Terms Questions for Review Problems Working with the Data Measurement Measuring GDP: The National Income and Product Accounts Nominal and Real GDP and Price Indices Macroeconomics in Action: Comparing Real GDP Across Countries and the Penn Effect Macroeconomics in Action: House Prices and GDP Measurement Savings, Wealth, and Capital Labor Market Measurement Macroeconomics in Action: Alternative Measures of the Unemployment Rate Chapter Summary Key Terms Questions for Review Problems Working with the Data Business Cycle Measurement Regularities in GDP Fluctuations Macroeconomics in Action: Economic Forecasting and the Financial Crisis Comovement The Components of GDP Nominal Variables Labor Market Variables Macroeconomics in Action: Jobless Recoveries Seasonal Adjustment Macroeconomics in Action: The Great Moderation and the 2008–2009 Recession Comovement Summary Chapter Summary Key Terms Questions for Review Problems Working with the Data Part II A One-Period Model of the Macroeconomy Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization The Representative Consumer The Representative Firm Macroeconomics in Action: How Elastic is Labor Supply? Macroeconomics in Action: Henry Ford and Total Factor Productivity Theory Confronts the Data: Total Factor Productivity and the U.S. Aggregate Production Function Chapter Summary Key Terms Questions for Review Problems Working with the Data A Closed-Economy One-Period Macroeconomic Model Government Competitive Equilibrium Optimality Working with the Model: The Effects of a Change in Government Purchases Theory Confronts the Data: Government Spending in World War II Working with the Model: A Change in Total Factor Productivity Theory Confronts the Data: Total Factor Productivity, Real GDP, and Energy Prices Macroeconomics in Action: Government Expenditures and the American Recovery and Reinvestment Act of 2009 A Distorting Tax on Wage Income, Tax Rate Changes, and the Laffer Curve A Model of Public Goods: How Large Should the Government Be? Chapter Summary Key Terms Questions for Review Problems Working with the Data Search and Unemployment Labor Market Facts Macroeconomics in Action: Unemployment and Employment in the United States and Europe A Diamond-Mortensen-Pissarides Model of Search and Unemployment Working with the DMP Model Macroeconomics in Action: Unemployment Insurance and Incentives Theory Confronts the Data: Productivity, Unemployment, and Real GDP in the United States and Canada: The 2008–2009 Recession A Keynesian DMP Model Macroeconomics in Action: The Natural Rate of Unemployment and the 2008–2009 Recession Chapter Summary Key Terms Questions for Review Problems Working with the Data Part III Economic Growth Economic Growth: Malthus and Solow Economic Growth Facts The Malthusian Model of Economic Growth The Solow Model: Exogenous Growth Theory Confronts the Data: The Solow Growth Model, Investment Rates, and Population Growth Macroeconomics in Action: Resource Misallocation and Total Factor Productivity Macroeconomics in Action: Recent Trends in Economic Growth in the United States Growth Accounting Macroeconomics in Action: Development Accounting Chapter Summary Key Terms Questions for Review Problems Working with the Data Income Disparity Among Countries and Endogenous Growth Convergence Theory Confronts the Data: Is Income Per Worker Converging in the World? Macroeconomics in Action: Measuring Economic Welfare: Per Capita Income, Income Distribution, Leisure, and Longevity Endogenous Growth: A Model of Human Capital Accumulation Macroeconomics in Action: Education and Growth Chapter Summary Key Terms Questions For Review Problems Working with the Data Part IV Savings, Investment, and Government Deficits A Two-Period Model: The Consumption–Savings Decision and Credit Markets A Two-Period Model of the Economy Theory Confronts the Data: Consumption Smoothing and the Stock Market The Ricardian Equivalence Theorem Macroeconomics in Action: The Economic Growth and Tax Relief Reconciliation Act and National Saving Theory Confronts the Data: Government Financing Arithmetic: Are Government Budget Deficits Sustainable? Chapter Summary Key Terms Questions for Review Problems Working with the Data Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security Credit Market Imperfections and Consumption Credit Market Imperfections, Asymmetric Information, and the Financial Crisis Theory Confronts the Data: Asymmetric Information and Interest Rate Spreads Credit Market Imperfections, Limited Commitment, and the Financial Crisis Theory Confronts the Data: The Housing Market, Collateral, and Consumption Theory Confronts the Data: Low Real Interest Rates and the Financial Crisis Social Security Programs Macroeconomics in Action: Transitions from Pay-As-You-Go to Fully Funded Social Security Chapter Summary Key Terms Questions for Review Problems Working with the Data A Real Intertemporal Model with Investment The Representative Consumer The Representative Firm Theory Confronts the Data: Investment and the Interest Rate Spread Government Competitive Equilibrium The Equilibrium Effects of a Temporary Increase in G : Stimulus, the Multiplier, and Crowding Out Macroeconomics in Action: The Total Government Spending Multiplier: Barro vs. Romer The Equilibrium Effects of a Decrease in the Current Capital Stock K The Equilibrium Effects of an Increase in Current Total Factor Productivity z The Equilibrium Effects of an Increase in Future Total Factor Productivity, z: News About the Future and Aggregate Economic A Theory Confronts the Data: News, the Stock Market, and Investment Expenditures Credit Market Frictions and the Financial Crisis Theory Confronts the Data: Interest Rate Spreads and Aggregate Economic Activity Sectoral Shocks and Labor Market Mismatch Theory Confronts the Data: The Behavior of Real GDP, Employment, and Labor Productivity in the 1981–1982 and 2008–2009 Recessions Chapter Summary Key Terms Questions for Review Problems Working with the Data Part V Money and Business Cycles Money, Banking, Prices, and Monetary Policy What Is Money? A Monetary Intertemporal Model A Level Increase in the Money Supply and Monetary Neutrality Shifts in Money Demand Theory Confronts the Data: Instability in the Money Demand Function The Short-Run Non-Neutrality of Money: Friedman–Lucas Money Surprise Model The Zero Lower Bound and Quantitative Easing Macroeconomics in Action: Empirical Evidence on Quantitative Easing Chapter Summary Key Terms Questions for Review Problems Working with the Data Business Cycle Models with Flexible Prices and Wages The Real Business Cycle Model A Keynesian Coordination Failure Model Macroeconomics in Action: Business Cycle Models and the Great Depression A New Monetarist Model: Financial Crises and Deficient Liquidity Macroeconomics in Action: Uncertainty and Business Cycles Chapter Summary Key Terms Questions for Review Problems Working with the Data New Keynesian Economics: Sticky Prices The New Keynesian Model The Nonneutrality of Money in the New Keynesian Model Theory Confronts the Data: Can the New Keynesian Model Under Fluctuations in the Interest Rate Target Explain Business Cycles? Theory Confronts the Data: Keynesian Aggregate Demand Shocks as Causes of Business Cycles The Role of Government Policy in the New Keynesian Model Total Factor Productivity Shocks in the New Keynesian Model Macroeconomics in Action: The Timing of the Effects of Fiscal and Monetary Policy The Liquidity Trap and Sticky Prices Macroeconomics in Action: New Keynesian Models, the Zero Lower Bound, and Quantitative Easing Criticisms of Keynesian Models Macroeconomics in Action: How Sticky Are Nominal Prices? Chapter Summary Key Terms Questions for Review Problems Working with the Data Part VI International Macroeconomics International Trade in Goods and Assets A Two-Period Small Open-Economy Model: The Current Account Theory Confronts the Data: Is a Current Account Deficit a Bad Thing? Production, Investment, and the Current Account Macroeconomics in Action: The World “Savings Glut” Chapter Summary Key Terms Questions for Review Problems Working with the Data Money in the Open Economy The Nominal Exchange Rate, the Real Exchange Rate, and Purchasing Power Parity Theory Confronts the Data: The PPP Relationship for the United states and Canada Flexible and Fixed Exchange Rates A Monetary Small Open-Economy Model with a Flexible Exchange Rate Theory Confronts the Data: Why Did the U.S. Currency Appreciate After the Onset of the Financial Crisis? A Monetary Small Open Economy with a Fixed Exchange Rate Macroeconomics in Action: Sovereign Debt and the EMU Capital Controls Macroeconomics in Action: Do Capital Controls Work in Practice? A New Keynesian Sticky Price Open-Economy Model Chapter Summary Key Terms Questions for Review Problems Working with the Data Part VII Money, Banking, and Inflation Money, Inflation, and Banking Alternative Forms of Money Macroeconomics in Action: Commodity Money and Commodity-Backed Paper Money Yap Stones and Playing Cards Money and the Absence of Double Coincidence of Wants: The Role of Commodity Money and Fiat Money Long-Run Inflation in the Monetary Intertemporal Model Macroeconomics in Action: Should the Fed Reduce the Inflation Rate to Zero or Less? Financial Intermediation and Banking Macroeconomics in Action: Banks, Non-Bank Financial Intermediaries, Too-Big-to-Fail, and Moral Hazard Macroeconomics in Action: Bank Failures and Banking Panics in the United States and Canada Chapter Summary Key Terms Questions for Review Problems Working with the Data Inflation, the Phillips Curve, and Central Bank Commitment The Phillips Curve The Phillips Curve, Inflation Forecasting, and the Fed’s Dual Mandate Macroeconomics in Action: Commitment and Post Financial Crisis Monetary Policy in the United States Chapter Summary Key Terms Questions for Review Problems Working with the Data Mathematical Appendix Chapter 4: Consumer and Firm Behavior Chapter 5: A Closed-Economy One-Period Macroeconomic Model Chapter 6: Search and Unemployment Chapters 7 and 8: Economic Growth Chapter 9: A Two-Period Model Chapter 11: A Real Intertemporal Model with Investment Chapter 12: Money, Banking, Prices, and Monetary Policy Chapter 17: Money, Inflation, and Banking Chapter 18: Inflation, the Phillips Curve, and Central Bank Commitment Index