Macroeconomics: Table of Contents

Ch 1What’s In Economics For You?
Scarcity, Opportunity Cost, Trade, and Models
1.1 Are You Getting Enough?
Scarcity and Choice
1.2 Give It Up for Opportunity Cost!
Opportunity Cost
1.3 Why Don’t You Cook Breakfast?
Gains from Trade
1.4 Economists as Mapmakers and Scientists:
Thinking Like an Economist
1.5 Where and How to Look:
Models for Microeconomics and Macroeconomics
Ch 2Making Smart Choices
The Law of Demand
2.1 Put Your Money Where Your Mouth Is:
Weighing Benefits, Costs, and Substitutes
2.2 Living on the Edge:
Smart Choices Are Marginal Choices
2.3 Move On When the Price Isn’t Right:
The Law of Demand
2.4 Moving the Margins:
What Can Change Demand?
Ch 3Show Me the Money
The Law of Supply
3.1 What Does It Really Cost?
All Costs Are Opportunity Costs
3.2 Forget It, It’s History:
Sunk Costs Don’t Matter for Future Choices
3.3 More for More Money:
The Law of Supply
3.4 Changing the Bottom Line:
What Can Change Supply?
Ch 4Coordinating Smart Choices
Demand and Supply
4.1 What Do Markets Do?
Price Signals from Combining Demand and Supply
4.2 When Prices Sit Still:
Market-Clearing, Equilibrium Prices
4.3 Moving Targets:
What Happens When Demand and Supply Change?
4.4 Economists Do It with Models:
Simplifying Changes in Demand and Supply
4.5 Getting More Than You Bargained for:
Consumer Surplus, Producer Surplus, and Efficiency
Ch 5Are Your Smart Choices Smart for All?
From Microeconomics to Macroeconomics
5.1 Is the Whole Greater Than the Sum of the Parts?
Reconciling Macroeconomics and
Microeconomics

5.2 Should Government Be Hands-Off or Hands-On?
Economics and Politics
5.3 Adding Up Everyone’s Choices:
Macroeconomic Outcomes and Players
5.4 Focusing on Your Future:
Why You Should Think Like a Macroeconomist
Ch 6Up Around the Circular Flow
Measuring GDP and Living Standards
6.1 Higher Prices, More Stuff, or Both?
Nominal GDP and Real GDP
6.2 How to Measure GDP:
Value Added and the Circular Flow
6.3 Adding All Macroeconomic Players:
Enlarging the Circular Flow
6.4 My GDP Is Bigger Than Yours:
What’s Wrong with GDP as a Measure of Well-Being?
Ch 7Do Macroeconomic Dreams Come True?
Potential GDP, Economic Growth, and Business Cycles
7.1 Does the Economy Live Up to Its Potential?
Potential GDP
7.2 Moving Up (Mostly):
Economic Growth
7.3 Boom and Bust:
Business Cycles
7.4 Shocking!
Economic Shocks and Business Cycles
Ch 8Costs of (Not) Working and Living
Unemployment and Inflation
8.1 Who Is Unemployed?
Calculating the Unemployment Rate
8.2 Is Unemployment Healthy, Unhealthy,
or Natural?
Types of Unemployment
8.3 Lightening Up Your Wallet:
What Is Inflation?
8.4 Inflation Starts with M:
The Quantity Theory of Money
8.5 Pulling and Pushing on Inflation:
Unemployment and Inflation Trade-Offs
Ch 9Skating to Where the Puck is Going
The Aggregate Supply and Aggregate Demand Model
9.1 Macroeconomic Performance Targets:
Potential GDP and Long-Run Aggregate Supply
9.2 If You Plan and Build It . . .
Short-Run Aggregate Supply
9.3 Will They Come and Buy It?
Aggregate Demand
9.4 Hitting the Targets:
Long-Run Macroeconomic Equilibrium
9.5 Economic Life Is Full of Shocks:
Aggregate Demand and Aggregate
Supply Shocks
Ch 10What's Behind Aggregate Demand?
The Aggregate Expenditure Model and Multipliers
10.1 The Bathtub Model:
Expenditure Plans and the Circular Flow
10.2 Macroeconomic Equilibrium without Say’s Law:
The Aggregate Expenditure Model
10.3 Keynesian Multiplication:
The Multiplier
10.4 Connecting the Models:
From Aggregate Expenditure to Aggregate Demand
Ch 11Trading Dollars for Dollars?
Exchange Rates and Payments with the Rest of the World
11.1 Shuffling Off to Buffalo:
Demand and Supply of Canadian Dollars
11.2 Dancing with Dollars:
Fluctuating Exchange Rates
11.3 How Exchange Rates Affect Your Life:
International Transmission Mechanism
11.4 Overvalued Compared to What?
Purchasing Power Parity and Rate of Return Parity Anchors
11.5 Where Do All the Dollars Flow?
International Balance of Payments
Ch 12Steering Blindly?
Money, Monetary Policy, and the Bank of Canada
12.1 Money is for Lunatics:
The Money or Bonds?
12.2 Legal Counterfeiting?
Who Supplies Money?
12.3 Target Shooting:
How the Bank of Canada Uses Short-Term Interest Rates to Steer the Economy
12.4 Driving with the Bank of Canada:
Aggregate Demand Transmission
Mechanisms

12.5 Transmission Breakdowns:
Monetary Policy Challenges
Ch 13Spending Others’ Money
Fiscal Policy, Deficits, and National Debt
13.1 Spenders of Last Resort:
Aggregate Demand Policies for
Stabilizing Business Cycles

13.2 Building Foundations:
Aggregate Supply Policies for Promoting Growth
13.3 Are Deficits Always Bad?
Government Budget Surpluses and Deficits
13.4 We Owe How Much?!
From Deficits to the National Debt
13.5 Are Deficits Like Potato Chips?
Hands-Off or Hands-On Role for Government?
Ch 14Are Sweatshops All Bad?
Globalization, Trade, and Protectionism
14.1 Why Don’t You Cook Breakfast?
Gains from Trade
14.2 Winners and Losers:
Efficiency and Trade
14.3 What’s So Wonderful about Free Trade?
Protectionism and Trade
14.4 Is Free Trade the Problem?
Globalization and Sweatshops
14.5 Globalization and Its Discontents:
Governments and Global Markets
Ch 15Hands-Off and/or Hands-On?
Controversies in Macroeconomics
15.1 Will the Circle Be Unbroken?
Say’s Law and the Fundamental Macroeconomic Question
15.2 What Happens in the Loanable Funds Market?
Business Investment and Savings
15.3 How Do They Start and Stop?
Business Cycles
15.4 The Main Event:
Monetary Policy and Fiscal Policy Disagreements
15.5 Market Failure or Government Failure?
Globalization Problems