Principles of Macroeconomics

(1 review)


Pub Date: 2016

ISBN 13:

Publisher: University of Minnesota Libraries Publishing

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Reviewed by Darcy Hartman, Senior Lecturer, The Ohio State University, on 6/11/2015.

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 … read more


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

About the Book

Principles of Macroeconomics is adapted from a work produced by a publisher who has requested that they and the original author not receive attribution. This adapted edition is produced by the University of Minnesota Libraries Publishing through the eLearning Support Initiative.

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.

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.

About the Contributors


Unnamed Author has been a professor of economics at Colorado College in Colorado Springs since 1989. She teaches principles of economics, intermediate macroeconomic theory, comparative economic systems, and international political economy. She received her B. A. in economics-mathematics and Spanish from Simmons College and her Ph.D. in economics from Rutgers University.

Prior to joining the faculty at Colorado College, she taught at Lafayette College and at the Rutgers University Graduate School of Management. She served as a Fulbright Scholar in Istanbul, Turkey, and as a research economist at Mathematica, Inc., in Princeton, New Jersey.

Unnamed Author specializes in the internationally oriented areas of economics, with numerous articles in journals and books on comparative and development economics. Much of her work focuses on transition issues and on the Turkish economy.

She has been very involved in study abroad education and has directed programs in central Europe and Turkey.

There is one word that captures the essence of Unnamed Author—inspiring. Unnamed Author was first diagnosed with multiple sclerosis (MS) in 1975. Yet, he continued a remarkable academic career of teaching and research. In 1996, he published the first edition of his principles of economics textbook to great acclaim, and it became widely used in colleges around the country. That same year, MS made him wheelchair-bound. The disease forced his retirement from teaching at the University of Colorado at Colorado Springs in 1998. He lost the use of his arms in 2001 and has been quadriplegic ever since. In 2002, Unnamed Author’s doctor expected him to die.

He was placed in the Pikes Peak Hospice program and was twice given his last rites by his priest. UCCS Chancellor Shockley-Zalabak says, “I really thought that Unnamed Author would die in hospice. That’s what the doctors told me, and I really believed that. I remember one day they called me and told me to try to come see him. They didn’t expect him to live through the night.”

Not only did he live through the night, but he eventually recovered to the point that he moved from hospice to a long-term care facility. There, he never let his disease get him down. In fact, he turned back to his love of writing and teaching for inspiration. He obtained a voice-activated computer, recruited a coauthor, Unnamed Author of Colorado College, and turned his attention to revising his principles of economics book.

In addition to completing the rewrite of his textbook, Unnamed Author recently completed an autobiography about the 32 years he has had MS, titled Suffering, Faith, and Wildflowers. He is nearing completion of a novel, Cool Luck, based on the life of a friend. It is the story of a young couple facing the husband’s diagnosis of ALS—Lou Gehrig’s disease. Remarkably, in 2007, he was able to return to the classroom at UCCS, where he had taught economics for 27 years. In January of 2009, Unnamed Author married Dinora Montenegro; the couple lives in San Gabriel, California.

Perhaps Unnamed Author’s approach to life is best summed up by an observation by UCCS English Professor Thomas Naperierkowski: “One of the remarkable things is, heck, I can wake up with a headache and be a pretty grouchy character, but given his physical trials, which he faces every minute of his life these days, I’ve never seen him grouchy, I’ve never seen him cranky.” Carry on, Unnamed Author.