Principles of Macroeconomics - Open Textbook Library (2023)

Principles of Macroeconomics - Open Textbook Library (1)

(2 reviews)

Principles of Macroeconomics - Open Textbook Library (2)Principles of Macroeconomics - Open Textbook Library (3)Principles of Macroeconomics - Open Textbook Library (4)Principles of Macroeconomics - Open Textbook Library (5)Principles of Macroeconomics - Open Textbook Library (6)

Copyright Year:2016

ISBN 13:9781946135179

Publisher:University of Minnesota Libraries Publishing

Language:English

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Reviewed by Brad Humphreys, Professor of Economics, West Virginia University on 9/12/18

The textbook covers all the topics that would typically be covered in a one semester principles of macro course. Measurement of production, employment, prices, interest rates. Short run (cycles) and long run (growth). Theoretical perspectives...read more

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Reviewed by Brad Humphreys, Professor of Economics, West Virginia University on 9/12/18

Comprehensivenessrating:5see less

The textbook covers all the topics that would typically be covered in a one semester principles of macro course. Measurement of production, employment, prices, interest rates. Short run (cycles) and long run (growth). Theoretical perspectives from the Keynesian and classical perspectives. International topics (trade, globalization). The index looks reasonable.

Content Accuracyrating:5

It appears accurate to me. I teach principles of macro every semester so I am familiar with the basic content. I have not used it in a class yet, so I have not been through this book in detail.

Relevance/Longevityrating:4

The information is up to date as of 2015. The GDP estimates are from 2014/15 as are the inflation and unemployment estimates. I assume that this will be periodically updated. Not much has changed in principles of macro recently, so keeping this text current will not be much of an issue (until the next recession occurs).

Clarityrating:4

This is based on Tim Taylors book (they bought the rights) so the original text was written by a respected economist. It is clearly written and undergrads should find this engaging and accessible. The jargon is minimal.

Consistencyrating:5

The terminology and framework are completely standard for a principles of macro text. Again, I have taught principles of macro every semester for the last 3-4 years, and the terminology and framework here are what would be expected.

Modularityrating:4

No long blocks of text. Frequent and clear subheadings. If anything, the chapters appear to be quite short. Some of the chapters appear to be approximately one 75 minute lecture of material.

(Video) MICROECONOMICS: introduction

Organization/Structure/Flowrating:4

Very typical organization for a principles of macro text. I have used several (two in the last 3 years - John Taylor and Coppock and Mateer), and they all have the same basic organization.

Interfacerating:5

The graphs, figures, photos and tables all looked good to me. Readable. Clear.

Grammatical Errorsrating:5

I did not see any grammatical errors. I did not read every chapter, but I'm sure Tim Taylor's book was thoroughly edited when it was being published by a for-profit publishing house.

Cultural Relevancerating:5

Examples are drawn fro all over the world, and the photos are inclusive. I did not see any culturally insensitive passages.

Comments

Ancillary Material / / The test bank is relatively small. Each chapter has about 35-40 multiple choice questions. This probably not enough for use in a large enrollment section - most test banks from for-profit publishers contain at least 100 multiple choice questions per chapter. The multiple questions all look fine to me. There are some essay questions but I teach large (300+) sections that only use multiple choice questions. / / The provided PowerPoint slides are rudimentary. They basically contain some of the figures, photos, and tables from the text. It will take some time and effort for instructors to develop complete PowerPoint slides for this book.

(Video) How To Download Any Book And Its Solution Manual Free From Internet in PDF Format !

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Reviewed by Darcy Hartman, Senior Lecturer, The Ohio State University on 6/10/15

Having spent a bit of time working my way through other textbooks to arrive at one that seemed to fit my style of teaching, I am pleasantly surprised at the comprehensiveness of this text. It covers all the main principles that would typically be...read more

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Reviewed by Darcy Hartman, Senior Lecturer, The Ohio State University on 6/10/15

Comprehensivenessrating:5see less

Having spent a bit of time working my way through other textbooks to arrive at one that seemed to fit my style of teaching, I am pleasantly surprised at the comprehensiveness of this text. It covers all the main principles that would typically be covered, but also includes some chapters on subjects that would be great to implement given enough time. At the very least, they are a resource for students that have taken a greater interest in the course work. I am speaking specifically on the chapters toward the end relating to poverty and income inquality. Additionally, the book contains a good review of graphing and some of the mathematics utilized within the book.

Content Accuracyrating:4

I will not suggest that I am providing a thorough review in accuracy, but from what I have reviewed, nothing seemed remiss. Perhaps a typo here or there - not enough to interrupt the flow of the material. But everything seemed in order from a content perspective.

Relevance/Longevityrating:4

The ability to update material would be the part most concerning to me as I do not know the updating practices for the authors. There seems to be good coverage of more recent events, and certainly there is good coverage going further back. I do not take issue with it as it stands. Even with the more expensive textbooks, it is the obligation of the professor or lecturer to keep students current while applying the principles being taught.

Clarityrating:5

I think that what I appreciate most with the textbook is that it seems to be written in a very straightforward manner. One common complaint that I hear from students is that textbook explanations can be tedious to get through. Given all the examples that are provided, and all the sample problems utilized, in addition to the actual writing, I think that students, including international students, would find this a generally approachable source.

Consistencyrating:4

Again, with the caveat that I have not read through every single part of the book, in my examination of the text, I did not enounter any inconsistencies within the book. Also, I felt that the presentation seemed consistent, yet more comprehensive, than most textbooks I have utilized.

Modularityrating:5

The breakdown of the text makes it very approachable from a learner standpoint. It is clear what the objectives are within each small section, and the objectives never seem overwhelming. This is useful from a teaching standpoint to keep students from feeling overwhelmed.

Organization/Structure/Flowrating:3

(Video) 20191211 Supporting OER At Your Institution

The organization of the book does not align with the current way that I teach. While I am open to making adjustments, I do think that the order of some chapters could be rearranged. For example, the topic of economic growth could easily be combined with development rather than treated as an afterthought. With an increasing focus on internationalization in higher education, separating the two suggests a sense of other from my perspective. I find it confusing to have GDP included in the chapter on inflation and unemployment, but then treated separately afterward.

Interfacerating:4

There were a few distractions for me in the layout that seemed to be issues with how it displayed on my computer. These were not so serious that they would prevent me from utilizing the materials. I have not had the chance to see how it presents on an ipad, tablet or phone.

Grammatical Errorsrating:4

I spotted one or two errors, but not enough to deter me from using the book.

Cultural Relevancerating:4

I certainly did not encounter anything that seemed culturally insensitive or offensive. I would encourage greater use of international examples, particularly when looking at policy tools. The book is U.S. focused; although this is the case with virtually every textbook that is presented to me. Internationalization of the curriculum seems to be an increasingly popular theme. That said, the book certainly utilizes enough international examples for me to consider it.

Comments

I am pleasantly surprised by this book. As I prepare for the 2015-2016 academic year, I will certainly consider using this text. I would need to get a better idea of how easily one can access the specific materials needed on demand.

(Video) Macroeconomics Lecture 1 Introduction and Overview

Table of Contents

  • Chapter 1: Economics: The Study of Choice
  • Chapter 2: Confronting Scarcity: Choices in Production
  • Chapter 3: Demand and Supply
  • Chapter 4: Applications of Demand and Supply
  • Chapter 5: Macroeconomics: The Big Picture
  • Chapter 6: Measuring Total Output and Income
  • Chapter 7: Aggregate Demand and Aggregate Supply
  • Chapter 8: Economic Growth
  • Chapter 9: The Nature and Creation of Money
  • Chapter 10: Financial Markets and the Economy
  • Chapter 11: Monetary Policy and the Fed
  • Chapter 12: Government and Fiscal Policy
  • Chapter 13: Consumption and the Aggregate Expenditures Model
  • Chapter 14: Investment and Economic Activity
  • Chapter 15: Net Exports and International Finance
  • Chapter 16: Inflation and Unemployment
  • Chapter 17: A Brief History of Macroeconomic Thought and Policy
  • Chapter 18: Inequality, Poverty, and Discrimination
  • Chapter 19: Economic Development
  • Chapter 20: Socialist Economies in Transition

Ancillary Material

  • Submit ancillary resource
  • About the Book

    Recognizing that a course in economics may seem daunting to some students, we have tried to make the writing clear and engaging. Clarity comes in part from the intuitive presentation style, but we have also integrated a number of pedagogical features that we believe make learning economic concepts and principles easier and more fun. These features are very student-focused. The chapters themselves are written using a “modular” format. In particular, chapters generally consist of three main content sections that break down a particular topic into manageable parts. Each content section contains not only an exposition of the material at hand but also learning objectives, summaries, examples, and problems. Each chapter is introduced with a story to motivate the material and each chapter ends with a wrap-up and additional problems. Our goal is to encourage active learning by including many examples and many problems of different types.

    A tour of the features available for each chapter may give a better sense of what we mean:

    Start Up—Chapter introductions set the stage for each chapter with an example that we hope will motivate readers to study the material that follows. These essays, on topics such as the value of a college degree in the labor market or how policy makers reacted to a particular economic recession, lend themselves to the type of analysis explained in the chapter. We often refer to these examples later in the text to demonstrate the link between theory and reality.

    Learning Objectives—These succinct statements are guides to the content of each section. Instructors can use them as a snapshot of the important points of the section. After completing the section, students can return to the learning objectives to check if they have mastered the material.
    Heads Up!—These notes throughout the text warn of common errors and explain how to avoid making them. After our combined teaching experience of more than fifty years, we have seen the same mistakes made by many students. This feature provides additional clarification and shows students how to navigate possibly treacherous waters.

    Key Takeaways—These statements review the main points covered in each content section.

    Key Terms—Defined within the text, students can review them in context, a process that enhances learning.

    (Video) Macroeconomics: Histories, Theories and Policies | Alex M. Thomas

    Try It! questions—These problems, which appear at the end of each content section and which are answered completely in the text, give students the opportunity to be active learners. They are designed to give students a clear signal as to whether they understand the material before they go on to the next topic.

    Cases in Point—These essays included at the end of each content section illustrate the influence of economic forces on real issues and real people. Unlike other texts that use boxed features to present interesting new material or newspaper articles, we have written each case ourselves to integrate them more clearly with the rest of the text.

    Summary—In a few paragraphs, the information presented in the chapter is pulled together in a way that allows for a quick review of the material.
    End-of-chapter concept and numerical problems—These are bountiful and are intended to check understanding, to promote discussion of the issues raised in the chapter, and to engage students in critical thinking about the material. Included are not only general review questions to test basic understanding but also examples drawn from the news and from results of economics research. Some have students working with real-world data.

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    FAQs

    What are the principles of macroeconomics? ›

    The five principles are: economic output, economic growth, unemployment, inflation and deflation, and investment.

    Who published the principles of macroeconomics? ›

    Cengage Learning

    Is principles of macroeconomics a hard class? ›

    AP Macroeconomics is considered quite easy, with class alumnae rating it 4.4/10 for overall difficulty (the 20th-most-difficult out of the 28 large AP classes surveyed). The pass rate is slightly lower than other AP classes, with 52% graduating with a 3 or higher.

    What are the three principles of macroeconomics? ›

    Governments use various policies and tools to steer the macroeconomy toward three main goals: full employment, price stability, and economic growth.

    What are the 7 basic principles of economics? ›

    These principles are: Scarcity Principle, Cost-Benefit Principle, Principle of Unequal Costs, Principle of Comparative Advantage, Principle of Increasing Opportunity Cost, Equilibrium Principle, and…show more content…

    What are 10 principles of economics? ›

    10 Principles of Economics
    • People Face Tradeoffs. ...
    • The Cost of Something is What You Give Up to Get It. ...
    • Rational People Think at the Margin. ...
    • People Respond to Incentives. ...
    • Trade Can Make Everyone Better Off. ...
    • Markets Are Usually a Good Way to Organize Economic Activity. ...
    • Governments Can Sometimes Improve Economic Outcomes.
    14 May 2020

    Who is the father of principles of economics? ›

    Adam Smith was an 18th-century Scottish philosopher. He is considered the father of modern economics. Smith is most famous for his 1776 book, "The Wealth of Nations."

    Who is the father of modern macroeconomics? ›

    Adam Smith was an 18th-century philosopher renowned as the father of modern economics, and a major proponent of laissez-faire (non-interference from government) economic policies.

    Who is the father of economists? ›

    Adam Smith was a Scottish economist who greatly influenced the economic theories of his time and came up with the first definition of economics on wealth generation, thus, he is known as the father of economics.

    What is the best way to study for macroeconomics? ›

    Practice, Practice, Practice

    Once you have settled yourself down into all the concepts of the exam and its content, then reviewed, you will have to test yourself and practice some questions to see where you are in your studies. The best way to do this is by answering questions relating to macroeconomic.

    How do you pass a macroeconomics class? ›

    How to Pass Introductory Micro- and Macro-economics
    1. Attend all micro and macro lectures. ...
    2. Take effective notes. ...
    3. Read the economics textbooks! ...
    4. Master econ topics as they are taught. ...
    5. Regularly attempt practice questions.
    12 Aug 2020

    How do you pass macroeconomics? ›

    AP Macroeconomics Exam Tips
    1. Take advantage of the 10-minute planning time. ...
    2. Remember that you may answer the questions in any order. ...
    3. Don't restate the question. ...
    4. Use correct terminology. ...
    5. Use graphs wisely. ...
    6. Label graphs clearly, correctly, and fully.

    What are the five principles of economics? ›

    There are five basic principles of economics that explain the way our world handles money and decides which investments are worthwhile and which ones aren't: opportunity cost, marginal principle, law of diminishing returns, principle of voluntary returns and real/nominal principle.

    What is principles of macroeconomics in college? ›

    The course examines the broad and general aspects of an economy and covers the traditional macroeconomic elements of an introductory economics program.

    What are the four main factors of macroeconomics? ›

    The four major factors of macroeconomics are:
    • Inflation.
    • GDP (Gross Domestic Product)
    • National Income.
    • Unemployment levels.

    Who gave the 10 principles of economics? ›

    Gregory Mankiw in his Principles of Economics outlines Ten Principles of Economics that we will replicate here, they are: People face trade-offs. The cost of something is what you give up to get it.

    How do you remember the 10 principles of economics? ›

    How to remember the Ten Principles of Economics: Easy Trick ... - YouTube

    How many principles are there in microeconomics? ›

    What are the three main concepts of Microeconomics? The three primary microeconomics concepts include demand supply, incentives, and costs and benefits. Additionally, production, resource allocation, price, consumption, and scarcity are taken into consideration.

    What are the 6 basic economic principles? ›

    • People choose. ...
    • All choices involve cost. ...
    • People respond to incentives in predictable ways. ...
    • Economic systems influence individual choices and incentives. ...
    • Voluntary trade creates wealth. ...
    • The future consequences of choices are the ones that matter.

    What is the 9th principle of economics? ›

    Principle 9: Prices rise when the government prints too much money[modifier | modifier le wikicode] Inflation is an increase in the overall level of prices in the economy. High inflation imposes various costs on society. Keeping inflation at a low level is a goal of economic policy makers around the world.

    What are the 2 basic principles of economics? ›

    First—people respond to incentives. Second—each transaction has an equal give and take. Paul breaks down economic thinking into two main principles and teaches you the intricacies of each.

    Who is the mother of economics? ›

    Amartya Sen is considered to be the Mother Teresa of Economics.

    Who is the 2nd father of economics? ›

    5 June] 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment.
    ...
    Adam Smith.
    Adam Smith FRSA
    RegionWestern philosophy
    SchoolClassical liberalism
    Main interestsPolitical philosophy, ethics, economics
    12 more rows

    What are economic principles? ›

    The economic principle encompasses a wide variety of economic laws and theories that define or explain how an economy attempts to satisfy the unlimited demand in the marketplace with a finite supply of resources available to do so.

    What is the other name of macroeconomics? ›

    The other name of macroeconomics is 'Income and Employment Theory'.

    What are the tools of macroeconomics? ›

    The key pillars of macroeconomic policy are: fiscal policy, monetary policy and exchange rate policy. This brief outlines the nature of each of these policy instruments and the different ways they can help promote stable and sustainable growth.

    When was the Word macro economics first used? ›

    Ragnar Frisch is a Norwegian economist who created the terms 'microeconomics' and 'macroeconomics" for the first time in the year 1993.

    Who is real man in economics? ›

    The term "economic man" (also referred to as "homo economicus") refers to an idealized person who acts rationally, with perfect knowledge, and who seeks to maximize personal utility or satisfaction. The presence of an economic man is an assumption of many economic models.

    Who invented economist? ›

    Adam Smith, a Scottish economist from the 18th century is regarded as the inventor of modern economics.

    Who is the Indian father of economics? ›

    The plan had heavily borrowed ideas from USSR's five year plans developed by Domer Mahadev Govind Ranade is known as the father of Indian Economics.

    Can I self study for macroeconomics? ›

    Lucky for you, AP Macro is one of the easier AP subjects to self-study. While teaching yourself an entire AP class won't be easy, it is entirely doable. You are about to embark on a difficult journey in learning economics, but one that will be entirely worth it.

    How can a beginner study economics? ›

    Begin your education on economics by taking classes in high school. Most schools offer at least one course in economics, and many offer more classes. If your school doesn't, see if you can take classes at a local community college, as many schools allow you to take classes concurrently.

    What are the 10 reasons of studying economics? ›

    10 Reasons Why You Should Study Economics
    • Economic forecaster. ...
    • Economists know reasons for unemployment. ...
    • Economists earn a high-paying Job. ...
    • You will understand the Market dynamics. ...
    • Able to make a good decision on personal spending. ...
    • Learning to optimize your quick cognitive response. ...
    • How to leverage economic tools.
    21 Sept 2022

    Why is macroeconomics so hard? ›

    Macroeconomics is difficult to teach partly because its theorists (classical, Keynesian, monetarist, New Classical and New Keynesian, among others) disagree about so much. It is difficult also because the textbooks disagree about so little.

    What is the fastest way to memorize economics? ›

    Hints
    1. Be realistic. ...
    2. Make sure you get plenty of food, sleep, and relaxation.
    3. Try to study in the same place at the same time every day.
    4. At the beginning of each study, period review the last thing you studied for 10 minutes.
    5. Rewrite your notes. ...
    6. Read your notes out loud.
    24 May 2019

    What is macroeconomics easy? ›

    Macroeconomics is the study of whole economies--the part of economics concerned with large-scale or general economic factors and how they interact in economies.

    What are the basic principles? ›

    basic principle - principles from which other truths can be derived; "first you must learn the fundamentals"; "let's get down to basics" fundamental principle, fundamentals, basics, bedrock. principle - a basic truth or law or assumption; "the principles of democracy"

    Why principles of economics are important? ›

    At its core, Economics is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life.

    What are the 10 principles of economics According to Mankiw? ›

    Greg Mankiw's Ten Principles
    • People face trade-offs.
    • The cost of something is what you give up to get it.
    • Rational people think at the margin.
    • People respond to incentives.
    • Trade can make everyone better off.
    • Markets are usually a good way to organize economic activity.
    • Governments can sometimes improve market outcomes.
    24 Dec 2017

    What are the types of macroeconomics? ›

    Types of macroeconomic factors
    • Interest rates. The value of a nation's currency greatly affects the health of its economy. ...
    • Inflation. ...
    • Fiscal policy. ...
    • Gross domestic product (GDP) ...
    • National income. ...
    • Employment. ...
    • Economic growth rate. ...
    • Industrial production.

    What are the six key macroeconomic variables? ›

    The six key macroeconomic variables are:
    • GDP (Gross Domestic Product)
    • Output.
    • Interest Rates.
    • Production.
    • Income.
    • Expenditure.

    What are 5 macroeconomic variables? ›

    Macroeconomic factors include inflation, fiscal policy, employment levels, national income, and international trade.

    › pages › An-Introdu... ›

    Macroeconomics is the study of large scale economic issues such as those which affect the entire economy. This is in contrast to Microeconomics which looks at s...
    This course prepares the student to understand the economic structure of the United States and its place in the world economy, to interpret common economic m...
    Course description. This introduction to macroeconomic theory and policy emphasizes the overall performance of the national economy. Topics include economic gro...

    What are 4 key principles of microeconomics? ›

    Key Takeaways

    Four key economic concepts—scarcity, supply and demand, costs and benefits, and incentives—can help explain many decisions that humans make.

    What are the 5 basic economic principles? ›

    There are five basic principles of economics that explain the way our world handles money and decides which investments are worthwhile and which ones aren't: opportunity cost, marginal principle, law of diminishing returns, principle of voluntary returns and real/nominal principle.

    What are the 5 macroeconomic? ›

    Stable and sustainable economic growth. Low levels of inflation. Low rates of unemployment. Equitable distribution of income in a country.

    How many principles are there in microeconomics? ›

    What are the three main concepts of Microeconomics? The three primary microeconomics concepts include demand supply, incentives, and costs and benefits. Additionally, production, resource allocation, price, consumption, and scarcity are taken into consideration.

    What are the 6 main macroeconomic factors? ›

    These variables, known as macroeconomic factors, describe the events that change the financial outlook of a country.
    ...
    These are examples of the macroeconomic factors that affect an economy:
    • Interest rates. ...
    • Inflation. ...
    • Fiscal policy. ...
    • Gross domestic product (GDP) ...
    • National income. ...
    • Employment. ...
    • Economic growth rate.

    What is principal of microeconomics? ›

    The Principles of Microeconomics exam covers material that is usually taught in a one-semester undergraduate course in introductory microeconomics, including economic principles that apply to the behavioral analysis of individual consumers and businesses.

    How do you remember the 10 principles of economics? ›

    How to remember the Ten Principles of Economics: Easy Trick ... - YouTube

    What do the 5 principles mean? ›

    The Five Principles are: quality, responsibility, mutuality, efficiency and freedom. “There's not a conversation I have with our associates and leaders, other corporations, government officials, or when I speak in public that doesn't weave in The Five Principles,” says Victoria Mars.

    What are the 10 principles of economics According to Mankiw? ›

    Greg Mankiw's Ten Principles
    • People face trade-offs.
    • The cost of something is what you give up to get it.
    • Rational people think at the margin.
    • People respond to incentives.
    • Trade can make everyone better off.
    • Markets are usually a good way to organize economic activity.
    • Governments can sometimes improve market outcomes.
    24 Dec 2017

    Why principles of economics are important? ›

    At its core, Economics is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life.

    What is main objective of macroeconomics? ›

    The primary goals of macroeconomics are to achieve stable economic growth and maximize the standard of living. Economic indicators are a good source of information to track macroeconomic performance.

    What are the principles of micro and macro economics? ›

    Microeconomic analysis offers insights into such disparate efforts as making business decisions or formulating public policies. Macroeconomics is more abstruse. It describes relationships among aggregates so big as to be hard to apprehend—such as national income, savings, and the overall price level.

    What are the 6 basic economic principles? ›

    • People choose. ...
    • All choices involve cost. ...
    • People respond to incentives in predictable ways. ...
    • Economic systems influence individual choices and incentives. ...
    • Voluntary trade creates wealth. ...
    • The future consequences of choices are the ones that matter.

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