© 1999-2008
Douglas A.Ruby

The Digital Economist

Principles of Macroeconomics

Macroeconomics is the study of economic behavior in the aggregate. This area of economics addresses topics related to the employment of resources, price stability, economic growth, and interactions among nations in the world economy.

Textbook Recommendations:
Frank, Robert H., Ben Bernanke Principles of Economics,3rd ed., 2007, McGraw-Hill.
Hubbard, Glenn., Anthony O'Brien Economics,2nd ed., 2009, Pearson Education.
Mankiw, N. Gregory, Principles of Economics, 5th ed., 2009.
McConnell, Campbell R. and Stan Brue Economics,16th ed., 2004, McGraw-Hill.
Miller, Roger LeRoy Economics Today,14th ed., 2008.

Ruby, Douglas A. , An Introduction to Macroeconomic Analysis,1st ed., 2002, Digital Authoring Resources.

•  A Schematic Model
•  Economic Data (1959-2000)
•  Macroeconomics Glossary
•  Price Index Calculator
•  The Spending Multiplier
•  The Money Multiplier

These worksheets are in .PDF format and require Adobe's Acrobat Reader.
•  Worksheet #1 -- Comparative Advantage
•  Worksheet #2 -- Production Possibilities
•  Worksheet #3 -- Equilibrium Analysis
•  Worksheet #4 -- Macroeconomic Data
•  Worksheet #5 -- The Flow of Funds
•  Worksheet #6 -- Income Determination

Fundamental Concepts
• An Introduction to Macroeconomics.
• Economics as a Social Science
• Working with Equations
• The Importance of Relative Prices
• Optimizing Behavior
• Production and Production Possibilities
• Specialization and Exchange
• Supplement: Comparative Advantage (opens in a new browser window)
Markets and the Price System
• Market Analysis
• Exogenous Demand-side Shocks
• Exogenous Supply-side Shocks
• Exogenous Shocks to Both Sides of the Market
Measures of Economic Activity
• National Income Accounting
• Business Cycles
• Unemployment
• The Balance of Payments
• Exchange Rates
Inflation, Inflationary Expectations and Interest Rates
• Measures of Inflation.
• Term Structure of Interest Rates.
• Supplement: Macroeconomic Data (opens in a new browser window)
Economic Growth, Productivity, and Living Standards
• The Creation of Wealth
Financial Markets, Money and the Federal Reserve
• Financial Markets and Yields on Financial Assets
• Money as a Financial Asset
• The Federal Reserve System (external WWW link)
• Money Supply Determination
• Supplement: The Money Multipler (opens in a new browser window)
• The Quantity Equation
Aggregate Demand and Output in the Short Run
• The components of Aggregate Demand
• Savings, Investment and Interest Rates
• Aggregate Expenditure, the Multiplier process and Income Determination.
• Supplement: The Spending Multiplier (opens in a new browser window)
Price Level Determination and Sources of Inflation
• Long Run Aggregate Supply and Price Level Determination