Combining the best of traditional and modern approaches to macroeconomics, Farmer's is the first book in the Intermediate market to genuinely fill the gap between the macroeconomics taught to graduate students and the macroeconomics traditionally taught to undergraduates. It begins with the traditional IS-LM and AD-AS models that have been the staples of undergraduate macro courses for decades. Then the second half of the book introduces newer, dynamic theories of macroeconomics, including various growth models. The result is a text that describes the emerging consensus view of macro.
Accessible Treatment of Dynamic Macroeconomics: The treatment of dynamics, including various growth models, is the clearest and most complete explanation available at the undergraduate level. The presentation is almost entirely graphical, making it accessible to students without advanced mathematical training.
Consensus View of Macroeconomics: This text appeals to instructors with both Keynesian and equilibrium viewpoints. It helps students understand why Keynes departed from the classical economists, and what the future of the subject holds. The general equilibrium model also helps to unify the book and link models together for the student.
Microfoundations Theme: Every chapter uses the basic tools of supply and demand. This reinforces the theme that micro- and macroeconomics are both based on the theory that households and firms pursue their own self interests.
Emphasis on Data: Students become familiar with the magnitude of important economic variables as they compare the implications of each theory with the actual historical record. Focus on the Facts boxes present real data that highlights a particular macroeconomic issue or topic.
Historical Framework: Macroeconomic models are introduced in their historical contexts to help students understand how ideas evolved and why the subject matter is where it is now.
Internet Activities: WebWatch boxes point students to on-line sources of data and policy analysis. Internet Questions are included at the end of many chapters.
More Accessible: This edition is refined throughout to enhance student accessibility. The author has moved overly difficult material to appendices. This edition adds more detailed explanations, where helpful, to improve understanding.
Thoroughly Updated: Text coverage and data has been updated throughout to reflect the latest developments in the field.
1. What this Book is About
2. Measuring the Economy
3. Macroeconomic Facts
PART B: THE CLASSICAL APPROACH TO AGGREGATE DEMAND AND SUPPLY
4. The Theory of Aggregate Supply
5. Aggregat Demand and the Classical Theory of the Price Level
6. Saving and Investment
PART C: THE MODERN APPROACH TO AGGREGATE DEMAND AND SUPPLY
8. The New-Keynsian Theory of Aggregate Supply
9. The Demand for Money and the LM Curve
10. The Supply of Money
11. The IS Curve
12. The IS-LM Model and Aggregate Demand
13. The Open Economy
PART D: DYNAMIC MACROECONOMICS
14. The Government Budget
15. Neoclassical Growth Theory
16. Endogenous Growth Theory
17. Unemployment, Inflation, and Growth
18. Expectations and Macroeconomics
19. What We Know and What We Don't