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Macroeconomic Essentials for Media Interpretation

Macroeconomic Essentials for Media Interpretation


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About the Book

"As so many readers of his little book on Econometrics have long known, Peter Kennedy has a special talent for presenting difficult concepts in ways that are clear and intuitively pleasing, while stressing rather than minimizing what is most important about the concepts. His new book on macroeconomic concepts and data that are widely reported in the media does the same thing, and provides a lot of nice examples, applications, and problems to boot. I'm sure it will find several grateful audiences." -- Mike Watts, Professor of Economics, Purdue University What do we want our students to be able to do upon completing an introductory course in macroeconomics--shift curves on diagrams or interpret media commentary on the economy? This book, an effort to lead students in the latter direction, offers a clear exposition of introductory macroeconomic theory along with more than 500 one- or two-sentence "news clips" that serve as illustrations and exercises. The author calls this approach "media economics" to distinguish it from the encyclopedic character of traditional texts. Although the book can be used as a macroeconomics principles text, it has been designed primarily for use as a supplement. It provides a guide to what the author calls the "really important" ideas of macroeconomics, with a strong connection to the real world. Thus many instructors will find the book suitable for use in courses enrolling business students. The method of presentation allows room for topics that are crucial for the interpretation of news commentary, but given inadequate coverage in traditional macroeconomics texts. Examples include the many roles ofnominal versus real interest rates, and international phenomena such as purchasing power parity. Despite its nontechnical presentation, the material in the book is quite challenging for students; to answer questions based on the news clips, students must truly understand the economic concepts and apply problem-solving skills rather than rote learning. This text, unlike existing economic texts, provides the student with a practical yet sophisticated grasp of the macroeconomic principles necessary to interpret media commentary. Multiple choice questions t/a this text

Table of Contents:
Part 1 Introduction: media economics; up-and-down economics; policy evaluation; a picture can be worth a thousand words; really important macroeconomics ideas. Part 2 Measuring GDP and inflation: what is GDP? - curiosity: what is the difference between GDP and GNP? estimating GDP; real versus nominal GDP measuring inflation - curiosity: how do the GDP deflator and the CPI differ? the costs of inflation - what level of inflation should we aim for? GDP as gross deceptive product; media illustrations. Appendix: measuring GDP by adding up incomes. Part 3 Unemployment: defining and measuring unemployment - curiosity: how to unemployment measured? the employment/ unemployment connection; what is full employment? - curiosity: why is unemployment so high in Europe? the cost of unemployment - curiosity: what is Okun's law? media illustrations. Part 4 The Keynesian approach: aggregate demand - curiosity: what about unwanted investment in inventories? determining national income; the multiplier - curiosity: what is the multiplier? inventories and forecasting; policy implications - curiosity: what is a leading indicator? media illustrations. Appendices: macroeconomics before Keynes - the classical school; the circular flow of income; the 45 grades line diagram; algebraic derivation of the multiplier. Part 5 The supply side: the aggregate supply curve; the aggregate demand curve; using the aggregate supply/aggregate demand diagram; where is full employment? moving into a boom - curiosity: how do AD and AS curves differ from macroeconomic curves? moving into recession - curiosity: are real wages countercyclical? analyzing supply shocks; supply-side economics - curiosity: what is real business-cycle theory? media illustrations. Appendix: deriving the AD curve. Part 6 Growth: the determinants of growth - curiosity: what is endogenous growth theory?; the productivity growth process; the role of national saving; policy for growth - curiosity: why about foreign financing? media illustrations. Part 7 Crowding out: automatic stabilizers; financing an increase in government spending - curiosity: what is the balanced-budget multiplier? media illustrations. Appendix: Ricardian equivalence. Part 8 The money supply: what is money? - curiosities: what is the Fed?, what is NOW account? fractional-reserve banking - curiosity: what are the legal reserve requirements? controlling the money supply; the money multiplier - curiosity: how big is the money multiplier? media illustrations. Part 9 The monetarist rule: the quantity theory; the modern quantity theory - curiosity: does excess money really affect spending? (Part contents).


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Product Details
  • ISBN-13: 9780262112215
  • Publisher: MIT Press Ltd
  • Publisher Imprint: MIT Press
  • Height: 260 mm
  • Returnable: N
  • Width: 210 mm
  • ISBN-10: 0262112213
  • Publisher Date: 01 Feb 1997
  • Binding: Hardback
  • Language: English
  • Weight: 1160 gr


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