Principles of Macroeconomics / Edition 6

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Taylor's clear exposition and engaging, well-chosen examples complemented by a unique graphical treatment help clarify abstract economic concepts and encourage students to develop an economic way of thinking. The numerous graphs, including Taylor's trademark Conversation Boxes, provide a visual, step-by-step demonstration of the economic models and theories under discussion.

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Editorial Reviews

From the Publisher
"I chose the Principles of Economics by Taylor/Weerapana because I liked the "Clarity of writing. It is a good, solid book with clear explanations."

"Some reasons I chose Principles of Economics by Taylor/Weerapana is "The organization, coverage, level of difficulty. Clarity of presentation, end of chapter exercises, pedagogy/approach, discussion of pertinent current economic issues, global coverage/scope."

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Product Details

  • ISBN-13: 9780618967636
  • Publisher: Cengage Learning
  • Publication date: 12/27/2007
  • Series: Available Titles Aplia Series
  • Edition description: 6
  • Edition number: 6
  • Pages: 880
  • Product dimensions: 8.50 (w) x 9.90 (h) x 0.70 (d)

Meet the Author

John B. Taylor, a highly regarded and widely honored figure, has earned numerous awards for both teaching and leadership in International Finance. Dr. Taylor is currently the Raymond Professor of Economics at Stanford University, where he has received the Hoagland Prize for excellence in undergraduate teaching and Rhodes Prize for teaching introductory economics. Dr. Taylor was founding Director of the innovative Stanford Introductory Economics Center and has served as Director of the Stanford Institute for Economic Policy Research. Since 1976, Dr. Taylor has worked in numerous government economic advisory roles. From 2001 to 2005, Dr. Taylor served as Undersecretary of Treasury for International Affairs, where he developed and implemented U.S. international financial policy, including currencies; trade in financial services; foreign investment, international debt; and reform of the International Monetary Fund, the World Bank, and other international financial institutions. Dr. Taylor was awarded the Medal of the Republic of Uruguay for his work in resolving the 2002 financial crisis. He was awarded the Treasury Distinguished Service Award for designing and implementing the financial reconstruction plan in Iraq and was awarded the Alexander Hamilton Award for his leadership in international finance. His accomplishments include helping to assemble an international coalition to freeze terrorist assets, expediting Afghanistan's economic reconstruction, creating a new currency and central bank in Iraq, forging an international agreement to reduce Iraq's debt by 80 percent, and creating a new economic engagement with Broader Middle East and North African countries. Taylor received his B.A. in Economics summa cum laude from Princeton University and Ph.D. in Economics from Stanford University.

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Table of Contents

Note: Each chapter includes a Conclusion, Key Points, Key Terms, Questions for Review, and Problems. Each appendix includes Key Points, Key Terms and Definitions, Questions for Review, and Problems. I. Introduction to Economics 1. The Central Idea Scarcity and Choice for Individuals Scarcity and Choice for the Economy as a Whole Market Economies and the Price System Economics in Action: Gains from Trade on the Internet Economics in Action: Teaching Jobs and Graduate School Applications--Two Sides of the Same Coin Economics in the News: Gains from Trade on the Radio 2. Observing and Explaining the Economy What Do Economists Do? The Fluctuating Price of Gasoline Recommending Appropriate Policies Economics in Action: An Economic Experiment to Study Discrimination Economics in Action: Science or Persuasion? Economics in the News: Young Economists at Work Appendix to Chapter 2. Reading, Understanding, and Creating Graphs Visualizing Observations with Graphs Visualizing Models with Graphs 3. The Supply and Demand Model Demand Supply Market Equilibrium: Combining Supply and Demand Economics in the News: Why Roses Cost More on Valentine's Day Economics in Action: Using the Supply and Demand Model to Analyze Real-World Issues 4. Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity Interference with Market Prices Elasticity of Demand Working with Demand Elasticities Elasticity of Supply Economics in Action: How Policymakers Use Price Elasticity of Demand to Discourage Underage Drinking Economics in the News: Increasing School Enrollment in Africa Economics in Action: Predicting the Size of a Price Increase Economics in Action: Will an Increase in the Minimum Wage Benefit Poor Workers? II. Principles of Macroeconomics 5. Macroeconomics:The Big Picture Measuring the "Size" of an Economy Unemployment, Inflation, and Interest Rates Macroeconomic Theory and Policy Economics in the News: How Economic Growth Can Transform an Economy Economics in Action: The Economic Impact of September 11 Appendix to Chapter 5. The Miracle of Compound Growth How Compound Growth Works Plotting Growing Variables 6. Measuring the Production, Income, and Spending of Nations Measuring GDP Saving Measuring Real GDP Shortcomings of the GDP Measure Economics in Action: Distinguishing Between Stocks and Flows Economics in the News: The Monthly Release of GDP Data Economics in Action: Measuring the Quality of Life Across Nations 7. The Spending Allocation Model The Spending Shares The Effect of Interest Rates on Spending Shares Determining the Equilibrium Interest Rate The Relationship Between Saving and Investment Economics in Action: Using the Spending Allocation Model to Analyze the Long-Run Implications of Shifts in Government Purchases and Consumption Economics in the News: The "Twin Deficits" 8. Unemployment and Employment Unemployment and Other Labor Market Indicators The Nature of Unemployment Modeling the Labor Market Economics in the News: Unemployment Each Month Economics in Action: Unemployment Among Young People Around the World 9. Productivity and Economic Growth Labor and Capital Without Technology Technology: The Engine of Growth Measuring Technology Technology Policy Economics in Action: The Role of Technology in Economic Growth Economics in Action: Examples of Changes in Technology That Increased Productivity Economics in Action: Two Invention Factories: Past and Present Economics in Action: Growth Accounting in Practice Economics in the News: Productivity Growth Appendix to Chapter 9. Deriving the Growth Accounting Formula 10. Money and Inflation What Is Money? The Fed, the Banks, and the Link from Reserves to Deposits Money Growth and Inflation Economics in the News: Counterfeit Money Economics in Action: Hyperinflation and Too Much Money III. Economic Fluctuations and Macroeconomic Policy 11. The Nature and Causes of Economic Fluctuations Changes in Aggregate Demand Lead to Changes in Production Forecasting Real GDP The Response of Consumption to Income Finding Real GDP When Consumption and Income Move Together Spending Balance and Departures of Real GDP from Potential GDP Economics in Action: Real-Life Examples of How Firms Respond to Demand Economics in the News: Assessing the Macroeconomic Impact of a Terrorist Attack Economics in Action: The Professional Forecasters Economics in Action: Making Time's Top 100 Appendix to Chapter 11. Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model The Keynesian Multiplier The Forward-Looking Consumption Model 12. The Economic Fluctuations Model The Aggregate Demand Curve The Inflation Adjustment Line Combining the Aggregate Demand Curve and the Inflation Adjustment Line Economics in the News: The Fed Raises and Then Lowers the Interest Rate 13. Using the Economic Fluctuations Model Changes in Government Purchases Changes in Monetary Policy Price Shocks Economics in Action: Explaining the Recovery from the Great Depression Economics in Action: The 2001 Recession and Recovery 14. Fiscal Policy The Government Budget Countercyclical Fiscal Policy The Structural Versus the Cyclical Surplus Economics in Action: How Should Social Security Be Reformed? Economics in Action: The Economic Report of the President 15. Monetary Policy Why Are Central Banks Independent? Running Monetary Policy Money and Other Instruments of Monetary Policy The Exchange Rate and Monetary Policy Economics in the News: Anatomy of a Hump 16. Financial Markets The Distinction Between Physical Capital and Financial Capital Markets for Financial Capital The Tradeoff Between Risk and Return Corporate Governance Problems Economics in Action: Understanding Stock and Bond Price Listings in Newspapers Economics in the News: Corporate Greed Appendix to Chapter 16. Present Discounted Value Discounting the Future Finding the Present Discounted Value IV. Trade and Global Markets 17. Economic Growth and Globalization Catching Up or Not? Economic Development Spreading and Using Technology Increasing Capital per Worker Economics in Action: The Millennium Challenge Corporation Economics in Action: Is There a Global Saving Glut? 18. The Gains from International Trade Recent Trends in International Trade Comparative Advantage Reasons for Comparative Advantage Gains from Expanded Markets Economics in the News: The Economic Impact of Outsourcing Economics in Action: Doing Politics and Economics 19. International Trade Policy Tariffs and Quotas The History of Trade Restrictions Arguments for Trade Barriers How to Reduce Trade Barriers Economics in Action: From Steel to Shrimp: The Same Old Tariff Story Economics in the News: The End of the Multi-Fiber Agreement Economics in Action: Ending the Corn Laws Glossary Index Credits
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