Comprehensive Explanations at an Appropriate Level
Macroeconomics is comprehensive, analytical, and challenging yet fully accessible to a wide range of students. Its thoroughness and accessibility enable instructors to select topics for special classroom emphasis with confidence that students can independently read and comprehend other assigned material in the book. Where needed, an extra sentence of explanation is provided. Brevity at the expense of clarity is false economy.
Fundamentals of the Market System
Many economies throughout the world are making difficult transitions from planning systems to market systems. Our detailed description of the institutions and operation of the market system in Chapter 2 is even more relevant than before. We pay particular attention to property rights, entrepreneurship, freedom of enterprise and choice, competition, and the role of profits because these concepts are often misunderstood by beginning students.
Step-by-Step, Two-Path Macro The McConnell authors believe that it is a mistake to yank the student back and forth between various macro models. So we systematically present macroeconomics by
- examining national income accounting and previewing economic growth, unemployment, and inflation
- discussing three key macro relationships
- presenting the aggregate expenditures model (AE model) in a single chapter
- developing the aggregate demand-aggregate supply model (AD-AS model)
- using the AD-AS model to discuss fiscal policy
- introducing monetary considerations into the AD-AS model
- using the AD-AS model to discuss monetary policy
- extending the AD-AS model to include both short-run and long-run aggregate supply
- applying the “long-run AD-AS model” to macroeconomic instability, economic growth, and disagreements on macro theory and policy.
We have organized Chapters 7, 8, and 9 to provide two alternative paths through the Macroeconomics. We know that nearly all instructors like to cover (somewhere in their macro course) the basic relationships between income and consumption, the real interest rate and investment, and changes in spending and changes in output (the multiplier, conceptually presented). All these topics are found in newly formulated Chapter 6, “The Basic Macroeconomic Relationship.” The instructor can proceed from Chapter 6 directly to Chapter 7 “The Aggregate Expenditures Model” or to Chapter 8, “Aggregate Demand and Aggregate Supply.” This organization allows those instructors who prefer not to teach the equilibrium AE model to skip it without loss of continuity. As before, the remainder of Macroeconomics is AD-AS based.
Emphasis on Technological Change and Economic Growth
This edition continues to emphasize economic growth. Chapter 1 uses the production possibilities curve to show the basic ingredients of growth. Chapter 5 explains how growth is measured and presents the facts of growth. Chapter 14 discusses the causes of growth, looks at productivity growth, and addresses some controversies surrounding economic growth. The Last Word in that chapter examines the rapid economic growth in China. Chapter 14W focuses on the developing countries and the growth obstacles they confront.
Integrated Text and Website
Macroeconomics and its Web site are highly integrated through in-text web icons, bonus Web chapters, Web newspaper articles, Web math notes, and other features. Our website is part and parcel of our student learning package, customized to the book.
Organizational Alternatives
Although instructors generally agree as to the content of principles of economics courses, they sometimes differ as to how to arrange the material. Macroeconomics includes six parts, and that provides considerable organizational flexibility. For example, the two-path macro enables covering the full aggregate expenditures model or advancing directly from the basic macro relationships chapter to the AD-AS model. Also, the section of Chapter 13 that discusses the intricacies of the relationship between short-run and long-run aggregate supply can easily be appended to Chapter 8 on AD and AS.
Pedagogical Aids
Macroeconomics has always been student oriented. Economics is concerned with efficiency-accomplishing goals using the best methods. Therefore, we offer the student some brief introductory comments on how to improve their efficiency and hence their grades.
In This Chapter You Will Learn We set out the learning objectives at the start of each chapter so the chapter's main concepts can be easily recognized. We have also tied the learning objectives to each of the numbered sections in each chapter. In addition, the chapter summaries are organized by number. Terminology A significant portion of any introductory course is terminology. Key terms are highlighted in bold type the first time they appear in the text. Key terms are defined in the margin and a comprehensive list appears at the end of each chapter. A glossary of definitions can also be found at the end of the book and on the Web site. Ten Key Concepts Ten Key Concepts have been identified to help students organize the main principles. The Ten Key Concepts are introduced in Chapter 1 and each one is reinforced throughout the textbook by its individual icon. Data updates Data updates for selected graphs and tables can be found on the McConnell-Brue-Barbiero Web site www.mcgrawhill.ca/olc/mcconnell . Graphics with supporting data Where possible we have tried to provide data to support our graphs. In such cases a data table appears in the same figure with the graph. Key Graphs We have labelled graphs having special relevance as Key Graphs. There is a quick quiz of four questions related to each Key Graph, with answers provided at the bottom of the graph. Reviewing the Chapter Important things should be said more than once. You will find a Chapter Summary at the conclusion of every chapter as well as two or three Quick Reviews within each chapter. The summary at the end of each chapter is presented by numbered chapter section. These review statements will help you to focus on the essential ideas of each chapter and also to study for exams. Global Perspective Boxes Each nation increasingly functions in a global economy. To help the student gain appreciation of this wider economic environment, we provide Global Perspective features, which compare Canada to other nations. Consider This Consider This boxes are used to provide analogies, examples, or stories that help drive home central economic ideas in a student-oriented, real-world manner. These brief vignettes illustrate key points in a lively, colourful, and easy-to-remember way. See the list of Consider This boxes inside the front cover of the text. The Last Word The Last Word features are lengthier applications and case studies located toward the end of each chapter. In this edition, we have included photos to pique student interest. See the list of Last Word features inside the front cover of the text. Appendix on Graphs Being comfortable with graphical analysis and a few related quantitative concepts will be a big advantage to students in understanding the principles of economics. The Appendix to Chapter 1, which reviews graphing, line slopes, and linear equations, should not be skipped. Study Questions A comprehensive list of questions is located at the end of each chapter. The old cliché that you “learn by doing” is very relevant to economics. Use of these questions will enhance your understanding. We designate several of them as “Key Questions” and answer them in the Study Guide. Internet Application Questions Students are presented with questions to explore on the Internet relevant to the topic discussed in the chapter. From the McConnell-Brue Barbiero Web site, www.mcgrawhill.ca/olc/mcconnell, students will find direct links to the Web sites included in these questions. |
2007 McGraw-Hill Higher Education