This book covers the typical material of an intermediate macroeconomics course at the undergraduate level. The approach is both theoretical and statistical, with the theory being limited to algebraic expressions and the statistics to simple and multiple regression and correlation. The coverage is traditional for the course (being IS-LM in its focus), and the tests are of the consumption function, investment function, demand for money, Phillips curve, etc. Every effort is made to explain the statistics, with some explicit statistical material embedded in the text and several "how to" sections in the Appendix geared to the popular programs Eviews and Excel. There is also a set of Internet links that instructors can readily access in order to supplement and update the data and to use to provide the data for the students to work the exercises.The book is intended as a text for an intermediate economics course and has been used as such at North Carolina State University. There are full sets of review questions, discussion questions, problems, and computer exercises attached to each chapter, all of which have been classroom-tested. In addition to undergraduates (especially advanced undergraduates), graduate instructors will benefit from the book; and both the professional and the graduate student will find the explanations and applications useful in their work.
Part 1 Macroeconomic tools: introduction - macroeconomic problems; national product and prices - a description of the economy. Part 2 Real spending: consumer spending and saving; consumption smoothing; investment spending; government spending; solutions - a business cycle model, the static IS curve and fiscal policy. Part 3 Money, demand and supply: money - definition and demand; money supply - bank, the federal reserve and monetary policy (1); monetary policy (2) in the demand side model - theory and practice. Part 4 The supply side: production; aggregate labour markets, inflation and rational expectations. Part 5 Dynamic and international macro: business cycles; understanding economic growth; foreign exchange and the global economy.