Académique Documents
Professionnel Documents
Culture Documents
MACROECONOMICS
Theories and Policies
Richard T. Froyen
University of North Carolina Chapel Hill
PEARSON
Prentice
Hall
Upper Saddle River, New Jersey 07458
Contents
Preface
PART ONE
xix
INTRODUCTION AND MEASUREMENT
CHAPTER 1 Introduction
2
N
1.1 What Is Macroeconomics?
2
1.2 Post-World War II U.S. Economic Performance
1.3
Output
3
Unemployment
4
Inflation
5
Inflation and Unemployment
6
The U.S. Federal Budget and Trade Deficits
8
Central Questions in Macroeconomics
10
Instability of Output
10
Movements in the Inflation Rate
10
The Output-Inflation Relationship
10
Growth Slowdown and Turnaround? 11
Implications of Deficits and Surpluses
11
1.4
Conclusion
12
24
13
23
CONTENTS
2.7
2.8
2.9
Conclusion
29
Perspectives 2.1 What GDP Is Not
18
Perspectives 2.2 National Income Accounts for England and
Wales in 1688 22
Perspectives 2.3 Dating Business Cycles 29
PART T W O
27
CHAPTER 3
. 3.1
32
3.2
3.3
Production
3.4
Employment
37
Labor Demand
37
Labor Supply
39
3.5
3.6
Conclusion
48
Perspectives 3-1 Real Business Cycles: A First Look
CHAPTER 4
4.1
26
33
34
48
53
4.2
56
4.3
4.4
Conclusion
66
Perspectives 4-1 Money in Hyperinflations 57
Perspectives 4-2 Supply-Side EconomicsA Modern
Classical View 65
CONTENTS
90
72
CHAPTER 6
6.1
6.2
6.3
CHAPTER 7
7.1
136
xi
xii
CONTENTS
7.2
7.3
143
144
153
8.2
8.3
8.4
8.5
8.6
160
191
]
192
193
CONTENTS
9.3
9.4
. 9.5
197
210
225
227
228
238
xiii
xiv
CONTENTS
250
PART FOUR
264
269
2 71
272
CONTENTS
287
285
305
PART FIVE
ECONOMIC POLICY
323
326
328
319
xv
xvi
CONTENTS
331
346
357
<
CONTENTS
CHAPTER 18 Fiscal Policy
xvii
368
368
374
18.4 The Economy and the Federal Budget: The Concept of Automatic Fiscal
Stabilizers
379
18.5 Fiscal Policy Controversies: From the Reagan Years to
the Present
384
The Pros and Cons of Fiscal Policy Rules
384
What About the Deficit? 385
The Federal Budget in the Late 1990s and into the
Twenty-First Century 387
18.6 Conclusion
388
Perspectives 18-1 Rational Expectations and the
Partisan Theory 373
Perspectives 18-2 State and Local Government Finances
PART SIX
ECONOMIC GROWTH
391
377
392
393
xviii
CONTENTS
19.5 Conclusion
409
Perspectives 19-1 Growth and Productivity Slowdowns in Other
Industrialized Economies 394
Perspectives 19-2 The Laffer Curve 401
Perspectives 19-3 Equality and Efficiency: The Big Trade-off 407
CHAPTER 20 Long-Run Economic Growth: Origins of the Wealth
of Nations
410
20.1 The Neoclassical Growth Model
410
Growth and the Aggregate Production Function 410
Sources of Growth in the Neoclassical Model 414
20.2 Recent Developments in the Theory of Economic Growth
416
Endogenous Growth Models 417
Implications of Endogenous Technological Change 419
Policy Implications of Endogenous Growth 420
20.3 Intercountry Income Differences Revisited
420
Perspectives 20-1 Growth Accounting for the United States:
An Example 417
Perspectives 20-2 Muck, Money, and the Moral Consequences of
Economic Growth 423
20.4 Conclusion
Glossary
Index
425
430
424