Macroeconomics Principles, Applications and Policy Implications

Macroeconomics Principles, Applications and Policy Implications introduces students to foundational principles of modern economics with real-world applications. The text draws connections between key concepts and sports, music, entertainment, the housing market, the bond market, the stock market, the loanable funds market, and other related financial markets. The book begins by addressing the scarcity of economic resources and the rationale for studying economics in order to maximize the economic and social impact of limited resources. Later chapters introduce supply and demand models, criteria for determining market efficiency, key macroeconomic variables, Keynesian macroeconomics, and fiscal and monetary policy. Students learn about the policy implications for business cycle fluctuations, basic theories of monetary economics, and the current state of the budget deficit and public debt for the U.S. economy. The text addresses the causes and consequences of inflation and unemployment, including the theory of inflation and unemployment tradeoffs resulting in stagflation. Closing chapters discuss the open economy macro model, as well as the foreign exchange market and its role in the global economy. Macroeconomics Principles, Applications and Policy Implications is an ideal resource for foundational courses in economics.