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Macroeconomics / Edition 1

Macroeconomics / Edition 1

by R. Glenn Hubbard, Anthony P. O'Brien, Matthew P Rafferty

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ISBN-10: 0136089887

ISBN-13: 9780136089889

Pub. Date: 07/29/2011

Publisher: Prentice Hall

Make the link between theory and real-world easier with the most up-to-date Intermediate Macroeconomics text on the market today!

Hubbard, O'Brien, and Rafferty realize that most students enrolled in today's intermediate macroeconomics courses are either undergraduate or masters students who are likely to become


Make the link between theory and real-world easier with the most up-to-date Intermediate Macroeconomics text on the market today!

Hubbard, O'Brien, and Rafferty realize that most students enrolled in today's intermediate macroeconomics courses are either undergraduate or masters students who are likely to become entrepreneurs, managers, bankers, stock brokers, accountants, lawyers, or government officials. Very few students will pursue a Ph.D. in economics. Given this student profile, Hubbard, O'Brien, and Rafferty's text presents Intermediate Macroeconomics in the context of contemporary events, policy, and business with an integrated explanation of today's financial crisis. Student and instructor feedback tells us that Hubbard, O'Brien, and Rafferty helps make the link between theory and real-world easier for students!

Available with the award-winning MyEconLab and grouped by Learning Objectives!

MyEconLab is a powerful assessment and tutorial system that works hand-in-hand with Intermediate Macroeconomics. MyEconLab includes comprehensive homework, quiz, test, and tutorial options, where instructors can manage all assessment needs in one program!

Note: If you are purchasing the standalone text (ISBN: 0132992795) or electronic version, MyEconLab does not come automatically packaged with the text. To purchase MyEconLab, please visit: www.myeconlab.com or you can purchase a package of the physical text + MyEconLab by searching the Pearson Higher Education web site. MyEconLab is not a self-paced technology and should only be purchased when required by an instructor.

Product Details

Prentice Hall
Publication date:
Edition description:
Older Edition
Product dimensions:
8.20(w) x 10.00(h) x 1.10(d)

Table of Contents

Part 1Introduction
Chapter 1Economics: Foundations and Models2
What Happens When U.S. Firms Move to China?2
Building a Foundation: Economics and Individual Decisions5
The Economic Problem That Every Society Must Solve7
The Modern "Mixed" Economy8
Economic Models10
Microeconomics and Macroeconomics13
A Preview of Important Economic Terms14
Key Terms18
Review Questions19
Problems and Applications19
Chapter 1 AppendixUsing Graphs and Formulas21
Graphs of One Variable22
Graphs of Two Variables23
Chapter 2Trade-offs, Comparative Advantage, and the Market System32
Managers Making Choices at BMW32
Production Possibilities Frontiers and Real-World Trade-offs34
The Market System46
Chapter 3Where Prices Come From: The Interaction of Demand and Supply62
How Hewlett-Packard Manages the Demand for Printers62
The Demand Side of the Market64
The Supply Side of the Market73
Market Equilibrium: Putting Demand and Supply Together77
The Effect of Demand and Supply Shifts on Equilibrium81
Chapter 4Economic Efficiency, Government Price Setting, and Taxes96
Should the Government Control Apartment Rents?96
Consumer Surplus and Producer Surplus98
The Efficiency of Competitive Markets102
Government Intervention in the Market: Price Floors and Price Ceilings104
The Economic Impact of Taxes112
Chapter 4 AppendixQuantitative Demand and Supply Analysis125
Demand and Supply Equations125
Calculating Consumer Surplus and Producer Surplus126
Part 2Firms in the Domestic and International Economies
Chapter 5Firms, the Stock Market, and Corporate Governance130
Google: From Dorm Room to Wall Street130
Types of Firms132
The Structure of Corporations and the Principal-Agent Problem134
How Firms Raise Funds136
Using Financial Statements to Evaluate a Corporation140
Understanding the Business Scandals of 2002143
Chapter 5 AppendixTools to Analyze Firms' Financial Information152
Using Present Value to Make Investment Decisions152
Going Deeper into Financial Statements157
Chapter 6Comparative Advantage and the Gains from International Trade162
Sugar Quota Drives U.S. Candy Manufacturers Overseas162
An Overview of International Trade164
Comparative Advantage: The Basis of All Trade167
The Gains from Trade168
Where Does Comparative Advantage Come From?173
Government Policies That Restrict Trade175
The Argument over Trade Policies and Globalization182
Chapter 6 AppendixMultinational Firms195
Multinational Firms195
Part 3Macroeconomic Foundations and Long-Run Growth
Chapter 7GDP: Measuring Total Production and Income202
Increases in GDP Spur Hiring at Freightliner202
Gross Domestic Product Measures Total Production205
Does GDP Measure What We Want It to Measure?212
Real GDP versus Nominal GDP215
Other Measures of Total Production and Total Income219
Chapter 8Unemployment and Inflation228
Lucent Technologies Deals with Unemployment and Inflation228
Measuring the Unemployment Rate and the Labor Force Participation Rate230
Types of Unemployment237
Explaining Unemployment240
Measuring Inflation243
Using Price Indexes to Adjust for the Effects of Inflation247
Real versus Nominal Interest Rates249
Does Inflation Impose Costs on the Economy?251
Chapter 9Economic Growth, the Financial System, and Business Cycles260
Growth and the Business Cycle at the Ford Motor Company260
Long-Run Economic Growth Is the Key to Rising Living Standards262
Saving, Investment, and the Financial System270
The Business Cycle278
Chapter 10Long-Run Economic Growth: Sources and Policies292
The Chinese Economic Miracle292
Economic Growth Over Time and Around the World294
What Determines How Fast Economies Grow?298
Economic Growth in the United States306
Why Isn't the Whole World Rich?311
Growth Policies319
Part 4Short-Run Flucuations
Chapter 11Output and Expenditure in the Short Run328
Demand Forecasts Backfire at Cisco Systems328
The Aggregate Expenditure Model330
Determining the Level of Aggregate Expenditure in the Economy333
Graphing Macroeconomic Equilibrium344
A Numerical Example of Macroeconomic Equilibrium350
The Multiplier Effect352
The Aggregate Demand Curve359
The Algebra of Macroeconomic Equilibrium368
Chapter 11 AppendixThe Algebra of Macroeconomic Equilibrium368
Chapter 12Aggregate Demand and Aggregate Supply Analysis370
Caterpillar Recovers Slowly from the 2001 Recession370
Aggregate Demand372
Aggregate Supply378
Macroeconomic Equilibrium in the Long Run and the Short Run383
A Dynamic Aggregate Demand and Aggregate Supply Model388
Chapter 12 AppendixMacroeconomic Schools of Thought403
Part 5Monetary and Fiscal Policy
Chapter 13Money, Banks, and the Federal Reserve System406
Mcdonald's Money Problems in Argentina406
What is Money and Why Do We Need It?408
How Do We Measure Money Today?412
How Do Banks Create Money?415
The Federal Reserve System423
The Quantity Theory of Money427
Chapter 14Monetary Policy438
Why Did Homebuilder Toll Brothers, Inc., Prosper During the 2001 Recession?438
What Is Monetary Policy?440
The Money Market and the Fed's Choice of Targets441
Monetary Policy and Economic Activity449
A Closer Look at the Fed's Setting of Monetary Policy Targets460
Is the Independence of the Federal Reserve a Good Idea?463
Chapter 15Fiscal Policy472
A Boon for H&R Block472
Fiscal Policy474
Using Fiscal Policy to Influence Aggregate Demand478
The Government Purchases and Tax Multipliers481
The Limits of Fiscal Policy to Stabalize the Economy485
The Effects of Fiscal Policy in the Long Run496
Chapter 15 AppendixA Closer Look at the Multiplier508
Chapter 16Inflation, Unemployment, and Federal Reserve Policy514
Why Does Whirlpool Care About Monetary Policy?514
The Discovery of the Short-Run Trade-off between Unemployment and Inflation516
The Short-Run and Long-Run Phillips Curves522
Expectations of the Inflation Rate526
How the Fed Fights Inflation530
Part 6The International Economy
Chapter 17Macroeconomics in an Open Economy544
Chinese Towels Invade Japan544
The Balance of Payments: Linking the United States to the International Economy546
The Foreign Exchange Market and Exchange Rates551
The International Sector and National Saving and Investment557
The Effect of a Government Budget Deficit on Investment560
Monetary Policy and Fiscal Policy in an Open Economy562
Chapter 18The International Financial System572
Fluctuating Exchange Rates Push Molson Breweries to Sell the Canadiens572
Exchange-Rate Systems574
The Current Exchange Rate System575
International Capital Markets588
Chapter 18 AppendixThe Gold Standard and the Bretton Woods System596
The Gold Standard596
The End of the Gold Standard596
The Bretton Woods System597
The Collapse of the Bretton Woods System598
Company Index1
Subject Index3

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