Brief Contents

Preface 21

PART 1 Introduction

1 Introduction to Macroeconomics 31

2 The Measurement and Structure of the National Economy 52

part 2 Long-Run Economic Performance

3 Productivity, Output, and Employment 93

4 Consumption, Saving, and Investment 142

5 Saving and Investment in the Open Economy 205

6 Long-Run Economic Growth 239

7 The Asset Market, Money, and Prices 277

part 3 Business Cycles and Macroeconomic Policy

8 BusinessCycles 315

9 The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis 352

10 Classical Business Cycle Analysis: Market-Clearing Macroeconomics 403

11 Keynesianism: The Macroeconomics of Wage and Price Rigidity 444

part 4 Macroeconomic Policy: Its Environment and Institutions

12 Unemployment and Inflation 487

13 Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy 520

14 Monetary Policy and the Federal Reserve System 573

15 Government Spending and Its Financing 613

Appendix A: Some Useful Analytical Tools 653

Glossary 661

Name Index 673

Subject Index 675