This text is well-known for using the Keynesian model in the teaching of economics; yet, in recent editions, the authors expanded coverage of the growth model considerably to achieve more balanced coverage. The text uses the aggregate supply/aggregate demand model as a fundamental tool for learning macroeconomics. It achieves the right level of rigor and detail, presenting complicated concepts in a relatively straightforward manner and using timely economic data. Using puzzles, issues, and well-developed examples, the authors provide a good balance of theory to application, allowing you to relate the materials to your everyday life.
William J. Baumol received his BSS at the College of the City of New York and his Ph.D. at the University of London. He is professor of economics at New York University, and senior research economist and professor emeritus at Princeton University. He is a frequent consultant to the management of major firms in a wide variety of industries in the United States and other countries, as well as to a number of governmental agencies. He has been president of the American Economic Association, and three other professional societies. He is an elected member of the National Academy of Sciences, created by the U.S. Congress, and of the American Philosophical Society, founded by Benjamin Franklin. Baumol is the author of more than thirty-five books, and hundreds of journal and newspaper articles that have been translated into more than a dozen languages.
Alan S. Blinder earned his Master's degree at the London School of Economics and a Ph.D. at MIT. He teaches at Princeton University and is the co-director of Princeton's Center for Economic Policy Studies. Blinder was President Clinton's first Council of Economic Advisers, served as vice chairman of the Federal Reserve Board, and played a role in formulating both the fiscal and monetary policies of the 1990s. Blinder wrote newspaper and magazine columns on economic policy for more than ten years.
Part I: GETTING ACQUAINTED WITH ECONOMICS. 1. What Is Economics? 2. The Economy: Myth and Reality. 3. The Fundamental Economic Problem: Scarcity and Choice. 4. Supply and Demand: An Initial Look. Part II: THE BUILDING BLOCKS OF DEMAND AND SUPPLY. 5. Consumer Choice: Individual and Market Demand. 6. Demand and Elasticity. 7. Production, Inputs, and Cost: Building Blocks for Supply Analysis. 8. Output, Price, and Profit: The Importance of Marginal Analysis. 9. The Economics of the Stock Market. Part III: MARKETS AND THE PRICE SYSTEM. 10. The Firm and the Industry under Perfect Competition. 11. Monopoly. 12. Between Competition and Monopoly. 13. Limiting Market Power: Regulation and Antitrust. Part IV: THE VIRTUES AND LIMITATIONS OF MARKETS. 14. The Case for Free Markets I: The Price System. 15. The Shortcomings of Free Markets. 16. The Market's Prime Achievement: Innovation and Growth. 17. Externalities, the Environment and Natural Resources. 18. Taxation and Resource Allocation. Part V: THE DISTRIBUTION OF INCOME. 19. Pricing the Factors of Production. 20. Labor and Entrepreneurship: The Human Inputs. 21. Poverty, Inequality, and Discrimination. 22. International Trade and Comparative Advantage.