CHAPTER 1 What Is Macroeconomics?


CHAPTER 2 The Measurement of Income, Prices, and Unemployment


CHAPTER 3 Income and Interest Rates: The Keynesian Cross Model and the IS Curve


CHAPTER 4 Strong and Weak Policy Effects in the IS-LM Model


CHAPTER 5 Financial Markets, Financial Regulation, and Economic Instability


CHAPTER 6 The Government Budget, the Government Debt, and Limitations of Fiscal Policy


CHAPTER 7 International Trade, Exchanges Rates, and Macroeconomic Policy


CHAPTER 8 Aggregate Demand, Aggregate Supply, and the Great Depression


CHAPTER 9 Inflation: Its Causes and Cures


CHAPTER 10 The Goals of Stabilization Policy: Low Inflation and Low Unemployment


CHAPTER 11 The Theory of Economic Growth


CHAPTER 12 The Big Questions of Economic Growth


CHAPTER 13 The Goals, Tools, and Rules of Monetary Policy


CHAPTER 14 The Economics of Consumption Behavior


CHAPTER 15 The Economics of Investment Behavior


CHAPTER 16 New Classical Macro and New Keynesian Macro


CHAPTER 17 Conclusion: Where We Stand


 

• Theory as a way to evaluate macro questions. Gordon believes that all macro questions relate to a core set of basic macro puzzles and presents theory with this in mind. Students not only see how theory applies to the real world, but they also learn how to recognize the connections between concepts, such as output and unemployment.


• Patient and early introduction to business cycles. Because students care most about today's issues, business cycles and inflation are discussed up front. The IS-LM model is presented early, and an integrated treatment covers monetary and fiscal policy stabilization, fiscal and foreign deficits and national saving, and the interplay between the balance of payments and exchange rates.


• A dynamic version of the AS-AD model. Gordon pioneered the dynamic analysis of aggregate demand and supply shocks that can cause inflation and unemployment to be either positively or negatively correlated. In this edition, the rising prices of oil provide a new test for this theory.


• A clear distinction between short- and long-run macro models. By clearly distinguishing short-run macro (business cycles and their prevention) from long-run macro (economic growth and the long-run consequences of debt and deficits), Gordon helps students understand how different models relate and connect to one another.


• Pedagogically designed figures. Color is used consistently throughout chapters to demonstrate the link between theoretical curves and related data graphs.


• Case studies. Directly following theoretical discussions, case studies bring the material to life using real-world examples to which students can relate.


• International Perspective boxes. Students gain a well-rounded view of the global economy through International Perspective boxes that compare economic performance in the United States with selected foreign countries.


• Self-Tests. At the end of every section, Self-Tests immediately check to ensure students retain the topics covered. Answers are provided at the end of each chapter.