Macroeconomics

PART 1 Introduction and Key Principles

1 Introduction: What Is Economics?

2 The Key Principles of Economics

3 Exchange and Markets

4 Demand, Supply, and Market Equilibrium

5 Measuring a Nation’s Production and Income

6 Unemployment and Inflation

7 The Economy at Full Employment

8 Why Do Economies Grow?

9 Aggregate Demand and Aggregate Supply

10 Fiscal Policy

11 The Income-Expenditure Model

12 Investment and Financial Markets

13 Money and the Banking System

14 The Federal Reserve and Monetary Policy

15 Modern Macroeconomics: From the Short Run to the Long Run

16 The Dynamics of Inflation and Unemployment

17 Macroeconomic Policy Debates

18 International Trade and Public Policy

19 The World of International Finance

For Principles of Macroeconomics courses.

Questions that drive interest, applications that illustrate concepts, and the tools to test and solidify comprehension.

Students come into their first Economics course thinking they will gain a better understanding of the economy around them. Unfortunately, they often leave with many unanswered questions. To ensure students actively internalize economics, O'Sullivan/Sheffrin/Perez use chapter-opening questions to spark interest on important economic concepts, applications that vividly illustrate those concepts, and chapter-ending tools that test and solidify understanding.

MyEconLab New Design is now available for this title! MyEconLab New Design offers:

• One Place for All of Your Courses. Improved registration experience and a single point of access for instructors and students who are teaching and learning multiple MyLab/Mastering courses.
• A Simplified User Interface. The new user interface offers quick and easy access to Assignments, Study Plan, eText & Results, as well as additional option for course customization.
• New Communication Tools. The following new communication tools can be used to foster collaboration, class participation, and group work.
  • Email: Instructors can send emails to their entire class, to individual students or to instructors who has access to their course.
  • Discussion Board: The discussion board provides students with a space to respond and react to the discussions you create. These posts can also be separated out into specific topics where students can share their opinions/answers and respond to their fellow classmates’ posts.
  • Chat/ ClassLive: ClassLive is an interactive chat tool that allows instructors and students to communicate in real time. ClassLive can be used with a group of students or one-on-one to share images or PowerPoint presentations, draw or write objects on a whiteboard, or send and received graphed or plotted equations. ClassLive also has additional classroom management tools, including polling and hand-raising.
• Enhanced eText. Available within the online course materials and offline via an iPad app, the enhanced eText allows instructors and students to highlight, bookmark, take notes, and share with one another.

Do you or would you like to incorporate economic experiments in your course? Economic experiments—actively involve the student in role-playing as consumers, producers, and policy makers.

• Stimulates student interest and are easy for professors to use and implement in a classroom of any size. See Chapter 4, Supply, Demand and Market Equilibrium after the e-o-c material.

How do you use your text’s end-of-chapter material? The end-of-chapter material is organized around the major sections of the chapter and its "applications" so the students can better organize his/her study plan.

ARTHUR O’SULLIVAN

is a professor of economics at Lewis and Clark College in Portland, Oregon. After receiving his B.S.

in economics at the University of Oregon, he spent two years in the Peace Corps, working with city

planners in the Philippines. He received his Ph.D. in economics from Princeton University in 1981

and has taught at the University of California, Davis, and Oregon State University, winning teaching

awards at both schools. He is the author of the best-selling textbook Urban Economics, currently in its

seventh edition.

Professor O’Sullivan’s research explores economic issues concerning urban land use, environmental

protection, and public policy. His articles have appeared in many economics journals, including the

Journal of Urban Economics, Journal of Environmental Economics and Management, National Tax Journal,

Journal of Public Economics, and Journal of Law and Economics.

Professor O’Sullivan lives with his family in Portland, Oregon. For recreation, he enjoys hiking,

kiteboarding, and squash.

is professor of economics and executive director of the Murphy Institute at Tulane University. Prior to

joining Tulane in 2010, he was a faculty member at the University of California, Davis, and served as

department chairman of economics and dean of social sciences. He has been a visiting professor at

Princeton University, Oxford University, London School of Economics, and Nanyang Technological

University, and he has served as a financial economist with the Office of Tax Analysis of the United

States Department of the Treasury. He received his B.A. from Wesleyan University and his Ph.D. in

economics from the Massachusetts Institute of Technology.

Professor Sheffrin is the author of 10 other books and monographs and over 100 articles in the

fields of macroeconomics, public finance, and international economics. His most recent books

include Rational Expectations (second edition) and Property Taxes and Tax Revolts: The Legacy of

Proposition 13 (with Arthur O’Sullivan and Terri Sexton).

Professor Sheffrin has taught macroeconomics and public finance at all levels, from general introduction

to principles classes (enrollments of 400) to graduate classes for doctoral students. He is the

recipient of the Thomas Mayer Distinguished Teaching Award in economics.

He lives with his wife Anjali (also an economist) in New Orleans, Louisiana, and has two daughters

who have studied economics. In addition to a passion for current affairs and travel, he plays a

tough game of tennis.

is a professor of economics and NCAA faculty athletics representative at California State University,

Sacramento. After receiving his B.A. in economics at the University of California, San Diego, he was

awarded his Ph.D. in economics from the University of California, Davis, in 1994. He taught economics

at Virginia Commonwealth University and Washington State University before coming to California

State University, Sacramento, in 2001. He teaches macroeconomics at all levels as well as econometrics,

sports economics, labor economics, and mathematics for economists.

Professor Perez’s research explores most macroeconomic topics. In particular, he is interested

in evaluating the ability of econometric techniques to discover the truth, issues of causality in

macroeconomics, and sports economics. His articles have appeared in many economics journals,

including the Journal of Monetary Economics; Econometrics Journal; Economics Letters; Journal of

Economic Methodology; Public Finance and Management; Journal of Economics and Business; Oxford

Bulletin of Economics and Statistics; Journal of Money, Credit, and Banking; Applied Economics; and

Journal of Macroeconomics.