Saylor.org

Back to Course Overview

Questions? Consult the FAQ's!

Search Q&A Center

Readings

• 1.1.1 Reading: Professor Robert Schenk’s CyberEconomics: “Overview: Introduction to Macro”

  Link: Professor Robert Schenk’s CyberEconomics: “Overview: Introduction to Macro” (HTML)
  
  Instructions: Read the introduction and then select “Different Tools” on the left-hand tab to read about the difference between microeconomics and macroeconomics.  After reading the article click on the “Review” tab to assess yourself.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 1.1.1 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 7: Classical-Keynesian Controversy”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 7: Classical-Keynesian Controversy” (PDF)
  
  Instructions: Read the entire chapter.  At the bottom of the page, click on “Assignments” and complete assignments 1-8.

  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike Generic License 2.5.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 1.1.2 Reading: Principles of Macroeconomics: “Chapter 3: Demand and Supply” and “Chapter 4: Applications of Demand and Supply”

  Link: Principles of Macroeconomics: “Chapter 3: Demand and Supply” (PDF) and “Chapter 4: Applications of Demand and Supply” (PDF)
  
  Instructions: Read these two chapters in their entirety to learn about demand and supply concepts.
  
  Terms of Use: The text was adapted by The Saylor Foundation under a CreativeCommons-Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.

  See a broken link? Please let us know!

• 1.1.2 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 3: Demand and Supply”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 3: Demand and Supply” (PDF)
  
  Instructions: Read the entire chapter.  At the bottom of the page, click on the “Assignments” link, and complete assignments 1-4.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike Generic License 2.5.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 1.2.1 Reading: Principles of Macroeconomics: "Chapter 5, Section 1: Growth of Real GDP and Business Cycles"

  Link: Principles of Macroeconomics: “Chapter 5, Section 1: Growth of Real GDP and Business Cycles” (PDF)
   
  Instructions: Read the introduction and then read the first section in its entirety.  This material will provide you with a general understanding of how the present financial crisis can be contextualized by studying macroeconomics, which is the analysis of aggregate values of economic variables.
   
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 1.2.2 Reading: Principles of Macroeconomics: “Chapter 5, Section 2: Price-Level Changes”

  Link: Principles of Macroeconomics: “Chapter 5, Section 2: Price-Level Changes” (PDF)
   
  Instructions: Read the second section, which serves as an introduction to price-level changes.  We will study it in depth later in this course.
   
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 1.2.3 Reading: Principles of Macroeconomics: “Chapter 5, Section 3: Unemployment”

  Link: Principles of Macroeconomics: “Chapter 5, Section 3: Unemployment” (PDF)
   
  Instructions: Read the third section, which serves as an introduction to unemployment.  We will study it in depth later in this course.
   
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 1.2.3 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 6: Business Cycle”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 6: Business Cycle” (PDF)
  
  Instructions: Read this material fo an overview of the concepts that are associated with the business cycle.  The business cycle provides information on the causes and characteristics of the economic problems associated with unemployment and inflation.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike Generic License 2.5.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 1.3.1 Reading: biz/ed’s Economics Glossary: “Fiscal Policy”

  Link: biz/ed’s Economics Glossary: “Fiscal Policy” (HTML)
   
  Instructions: Read the definition of fiscal policy on this page to familiarize yourself with the basic objectives of fiscal policy.  We will study this topic in detail later in the course.
   
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 1.3.1 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 9: Fiscal Policy”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 9: Fiscal Policy” (PDF)
  
  Instructions: Read this chapter, which identifies the policies needed when inflation and recession are present.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike Generic License 2.5.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 1.3.2 Reading: biz/ed’s Economics Glossary: “Monetary Policy”

  Link: biz/ed’s Economics Glossary: “Monetary Policy” (HTML)
  
  Instructions: Read the definition of monetary policy presented on this page to familiarize yourself with the basic objectives of monetary policy.  Click on the “History” icon on the left-hand side to see how monetary policy has developed over time.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 1.3.2 Reading: U.S. Department of State: Christopher Conte and Albert R Karr’s An Outline of the U.S. Economy: “Chapter 7: Monetary and Fiscal Policy”

  Link: U.S. Department of State: Christopher Conte and Albert R Karr’s An Outline of the U.S. Economy: “Chapter 7: Monetary and Fiscal Policy” (PDF)
  
  Instructions: Read this article by Christopher Conte, a former editor and reporter for the Wall Street Journal, and Albert R. Karr, a former Wall Street Journal reporter.  This article provides an overview of the fiscal and monetary policy of the United States.  Reflect on how these policies might be coordinated to achieve macroeconomic objectives.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 1.3.3 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 15: Economic Growth”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 15: Economic Growth” (PDF)
  
  Instructions: Read this chapter on economic growth, which explains why it is important for the government to define an appropriate growth policy and sustain it over time.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike Generic License 2.5.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 1.4.1 Reading: AmosWeb’s Encyclonomic Webpedia: “Resource Markets”

  Link: AmosWeb’s Encyclonomic Webpedia: “Resource Markets” (HTML)
  
  Instructions: This page highlights the characteristics that define resource, product, and financial markets.  It shows how they are interconnected using the circular flow diagram, which we will study in detail next.  Ignore the last two subheadings (“Spotlight on Labor” and “Natural Unemployment”), which will be covered later in the course.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 2.1 Reading: State University of New York at Oswego: Professor John Kane’s Lecture notes on Principles of Macroeconomics: “National Income Accounting”

  Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on Principles of Macroeconomics: “National Income Accounting” (HTML)
  
  Instructions: Read these lecture notes in their entirety for a summary of how aggregate output is measured using the Gross Domestic Product (GDP) and other related macroeconomic variables.  Note that national income accounting is the process of counting a country’s expenditures versus its income.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 2.2 Reading: Principles of Macroeconomics: “Chapter 6, Section 1: Measuring Total Output”

  Link: Principles of Macroeconomics: “Chapter 6, Section 1: Measuring Total Output” (PDF)
  
  Instructions: This section describes the Gross Domestic Product (GDP) as a measure of final goods and services using expenditure.  It also distinguishes the GDP from the Gross National Product (GNP).  Note that total output (also referred to as aggregate output) is the amount of production that the economy has generated in a given period of time.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 2.3 Reading: Principles of Macroeconomics: “Chapter 6: Measuring Total Output and Income”

  Link: Principles of Macroeconomics: “Chapter 6: Measuring Total Output and Income” (PDF)
  
  Instructions: Read this chapter, which is about measuring total output and income.  This material concentrates on the purpose and function of GDP.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 2.4 Reading: Principles of Macroeconomics: “Chapter 6: Measuring Total Output and Income”

  Link: Principles of Macroeconomics: “Chapter 6: Measuring Total Output and Income” (PDF)
  
  Instructions: Scroll down to and read the section entitled “Final Goods and Value Added.”  Final goods and services are finished products that are produced in a given year.  For example, a fully manufactured automobile is a final good.  The products that are used to manufacture final goods are called intermediate parts or inputs and are not “counted”: all of the resources or inputs that are used to manufacture an automobile are only counted as one completed product.  If the intermediate parts are counted as well as the final good, it is known as “double counting”; this can diminish the accuracy of the GDP measurement.
   

  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 2.5 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 5: National Income Accounting”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 5: National Income Accounting” (PDF)
  
  Instructions: Scroll down to and read the information on Gross National Product and Gross Domestic Product.  Gross Domestic Product refers to production counted within a country’s borders, whereas Gross National Product refers to production by domestic factors both inside and outside of a country’s borders.  In modern times, the Group of Seven (G7), Group of Eight (G8), and the Group of 20 (G20) use the GDP formula in measuring GDP growth, so the global economy uses the same formula to measure each country’s economic welfare or well-being.  This ensures that countries are on the same accounting page.  Note that some countries use GNP as a metric, but GDP is the standard accounting system.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike License 2.5 Generic.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 2.6.2 Reading: Principles of Macroeconomics: “Chapter 6, Section 2: Measuring Total Income”

  Link: Principles of Macroeconomics: “Chapter 6, Section 2: Measuring Total Income” (PDF)
  
  Instructions: This section details the computational method for calculating total output in the economy using income.  Please attempt the “Try It” problems at the end of the chapter and review the correct answers.
  
  Income is the other side of the national income accounting process.  For a country (or household) to be efficient, it must be able to detail the sources of its income. The point of the national income accounting system is to determine efficiency of a country, much like one would do in one’s own household.  Economists seek data about income as well as expenditure; ideally, the two should be in balance (that is, they should be the same amount).  When income and expenditure are balanced, the country (or the household) is said to have a balanced budget.
   

  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 2.6.3 Reading: Professor Robert Schenk’s CyberEconomics: “Gross Domestic Product”

  Link: Professor Robert Schenk’s CyberEconomics: “Gross Domestic Product” (PDF)
  
  Instructions: Read this chapter to review the distinction between real GDP and nominal GDP.  Click on the “Review” tab at the bottom of the page to test yourself on these concepts.  Finally, click on the “Explore” tab at the bottom of the page to deepen your understanding of these topics.  Complete the problems presented in this section, as well.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 2.6.4 Reading: Principles of Macroeconomics: “Chapter 6, Section 3: GDP and Economic Well Being”

  Link: Principles of Macroeconomics: “Chapter 6, Section 3: GDP and Economic Well Being” (PDF)
  
  Instructions: Read this section to learn about the limitations of the GDP statistics.  Since GDP exclusively measures the expenditures and income of an country, the measurement of that country's economic welfare does not always take into account all of the components of the country’s well-being.  There are several criticisms regarding using GDP as a measure of economic well-being.  Some of the criticisms are that the GDP does not take into account non-market activities, leisure time, product quality, the underground economy, the environment, the composition and distribution of output, or any non-economic sources of well-being.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• Reading: Massachusetts Institute of Technology’s OpenCourseWare: Principles of Macroeconomics Lecture Notes: “L2 (Measuring macroeconomic variables)” and “L3-L4 (Production and the labor market)”

  Link: Massachusetts Institute of Technology’s OpenCourseWare: Principles of Macroeconomics Lecture Notes: “L2 (Measuring macroeconomic variables)” and “L3-L4 (Production and the labor market)” (PDF)
  
  Instructions: This is an optional reading.  Read through the notes in these links for a review of the material covered in units 1 and 2.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 3.1.1 Reading: Professor Robert Schenk’s CyberEconomics: “The Unemployment Rate”

  Link: Professor Robert Schenk’s CyberEconomics: “The Unemployment Rate” (PDF)
  
  Instructions: Read this note on the unemployment rate.  Click the “Review” link and answer two questions and assess your understanding of the unemployment rate.
  
  Terms of Use: The linked material above has been reposted by the kind permission of Robert Schenk, and can be viewed in its original form here.  Please note that this material is under copyright and cannot be reproduced in any capacity without explicit permission from the copyright holder.

  See a broken link? Please let us know!

• 3.1.2 Reading: State University of New York at Oswego: Professor John Kane’s Lecture notes on Principles of Macroeconomics: “Chapter 8: Unemployment and Inflation”

  Link: State University of New York at Oswego: Professor John Kane’s Lecture notes on Principles of Macroeconomics: “Chapter 8: Unemployment and Inflation” (HTML)
  
  Instructions: Scroll down to the “Types of Unemployment” section and read up to “The Record of Unemployment.”
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 3.1.3 Reading: U.S. Bureau of Labor Statistics: “Unemployment Statistics” and “News Release: Employment Situation Monthly”

  Link: U.S. Bureau of Labor Statistics: “Unemployment Statistics” (PDF)  and “News Release: Employment Situation Monthly” (PDF).
  
  Instructions: Read the paragraph under “Unemployment” on this page.  Make sure to read each section in its entirety.  You may also consider viewing the original webpage to explore some of the other hyperlinks for statistics on unemployment.  It is important to understand the mechanism of how unemployment is determined and how economists measure unemployment.
  
  Terms of Use: This work is in the public domain.

  See a broken link? Please let us know!

• 3.1.3 Reading: The Saylor Foundation’s “Unemployment Rate”

  Link: The Saylor Foundation’s “Unemployment Rate” (PDF)
   
  Instructions: Read this text, which includes statistics from the Bureau of Labor Statistics, in order to get a better understanding of how the unemployment rate is calculated.

  See a broken link? Please let us know!

• 3.1.4 Reading: Professor Robert Schenk’s CyberEconomics: “Weaknesses of Unemployment Statistics”

  Link: Professor Robert Schenk’s CyberEconomics: “Weaknesses of Unemployment Statistics” (PDF)
  
  Instructions: This reading explains the shortcomings of unemployment statistics.  Read it in entirety to learn about the problems associated with the unemployment rate and then work on the questions presented in the “Review” section and the “Explore” section.
  
  Terms of Use: The linked material above has been reposted by the kind permission of Robert Schenk, and can be viewed in its original form here.  Please note that this material is under copyright and cannot be reproduced in any capacity without explicit permission from the copyright holder.

  See a broken link? Please let us know!

• 3.2 Reading: State University of New York at Oswego: Professor John Kane’s Lecture notes on Principles of Macroeconomics: “Chapter 8: Unemployment and Inflation”

  Link: State University of New York at Oswego: Professor John Kane’s Lecture notes on Principles of Macroeconomics: “Chapter 8: Unemployment and Inflation” (HTML)
  
  Instructions: Scroll down to the heading entitled “Inflation” to read about the types of inflation, the costs of inflation, and hyperinflation.  Note that this resource covers the topics in sub-subunit 3.2.1.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 3.2 Reading: Principles of Macroeconomics: “Chapter 5, Section 2: Price-Level Changes”

  Link: Principles of Macroeconomics: “Chapter 5, Section 2: Price-Level Changes” (PDF)
  
  Instructions: Read the section entitled “Price Indexes” to learn how to compute some price indices.  This section focuses on the consumer price index (CPI), the rate of inflation or deflation, and the biases associated with the CPI.  Note that this resource covers the topics in sub-subunits 3.2.2 and 3.2.3.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 3.2.3 Reading: Australian Bureau of Statistics: Consumer Price Index Concepts, Sources, and Methods: “Chapter 4: Price Index Theory”

  Link: Australian Bureau of Statistics: Consumer Price Index: Concepts, Sources, and Methods: “Chapter 4:  Price Index Theory” (PDF)
   
  Instructions:  Click on the link above, and read Chapter 4 in its entirety. 
  
  Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.

  See a broken link? Please let us know!

• 3.2.5 Reading: Research Department of the Federal Reserve Bank of Cleveland: Economic Commentary: “On the Costs of Inflation”

  Link: Research Department of the Federal Reserve Bank of Cleveland: Economic Commentary: “On the Costs of Inflation” (PDF)
  
  Instructions: Read the entire article, which discusses how inflation can distort the allocation of resources and adversely affect economic efficiency.
  
  Terms of Use: The material above is reposted from the website of The Federal Reserve Bank of Cleveland.  The original version can be found here.  The Federal Reserve Bank of Cleveland has stipulated that users may reproduce this content and/or portions thereof without limitation provided that users comply with the terms of use posted here.

  See a broken link? Please let us know!

• 3.3 Reading: Principles of Macroeconomics: “Chapter 16, Section 1: Relating Inflation and Unemployment”

  Link: Principles of Macroeconomics: “Chapter 16, Section 1: Relating Inflation and Unemployment” (PDF)
  
  Instructions: Read this section for a discussion of inflation and unemployment.  The relationship between inflation and unemployment will be explained in detail later in the course.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 4.1 Reading: State University of New York at Oswego: Professor John Kane’s Lecture notes on Principles of Macroeconomics: “Chapter 9: Aggregate Demand and Supply”

  Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on Principles of Macroeconomics: “Chapter 9: Aggregate Demand and Supply” (HTML)
  
  Instructions: These are introductory notes about aggregate demand and supply.  Read this entire set of lecture notes for an overview of the demand and supply model in the macroeconomic context.  For Aggregate Demand (AD), please pay special attention to the components that constitute aggregate demand and the factors that affect each of these components resulting in shifts of the AD curve.  These lecture notes also explain why the AD curve is negatively-sloped.  (For those who have studied Microeconomics, note that the reason for the negative slope of the AD curve is different than what it was for the individual/market demand curve.)  For Aggregate Supply (AS), please be aware of the distinction between the Short-Run AS curve and the Long-Run AS curve and the factors that lead to shifts or changes in the two curves respectively.  Finally, look at how the AD and the AS interact to reach equilibrium.  This material also covers sub-subunits 4.1.1-4.1.6.
   
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 4.1 Reading: Prentice Hall Companion Website: Karl E. Case and Ray C. Fair’s Principles of Macroeconomics “Chapter 13: Aggregate Demand, Aggregate Supply, and Monetary and Fiscal Policy”

  Link: Prentice Hall Companion Website: Karl E. Case and Ray C. Fair’s Principles of Macroeconomics: “Chapter 13: Aggregate Demand, Aggregate Supply, and Monetary and Fiscal Policy” (HTML)
   
  Instructions: Read the entire chapter and work with the interactive active graphs to develop an understanding of the concepts covered in this chapter.  
   
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 4.1 Reading: Principles of Macroeconomics: “Chapter 7: Aggregate Demand and Aggregate Supply”

  Link: Principles of Macroeconomics: “Chapter 7: Aggregate Demand and Aggregate Supply” (PDF)
  
  Instructions: This reading will provide you with the details and examples needed to master aggregate demand and aggregate supply.  Read the entire chapter and then answer the questions in the “Try It” box at the end of each section before reviewing the correct answers.
   
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 4.1 Reading: Bureau of Economic Analysis: “Table 1.1.5: Gross Domestic Product”

  Link: Bureau of Economic Analysis: “Table 1.1.5: Gross Domestic Product” (PDF)
   
  Instructions: This table contains statistics on various components of the GDP from 2010 to 2012.  Observe how the United States has gone through growth and contraction at various points during this time period.  The data is correlated to the changes in the United States’ aggregate demand.
   
  Terms of Use: This work is in the Public Domain.

  See a broken link? Please let us know!

• 4.1 Reading: YouTube: ACDC Leadership’s “Inflationary and Recessionary Gaps: Fiscal and Monetary Policy Overview”

  Link: YouTube: ACDC Leadership’s “Inflationary and Recessionary Gaps: Fiscal and Monetary Policy Overview” (YouTube)
  
  Instructions: Watch this brief video.
  
  Watching this video should take approximately 4 minutes.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 4.1 Reading: The Federal Reserve Board’s The Federal Reserve System: Purposes and Functions: “Chapter 2, Monetary Policy and the Economy”

  Link: The Federal Reserve Board’s The Federal Reserve System: Purposes and Functions: “Chapter 2, Monetary Policy and the Economy” (PDF)
  
  Instructions:  Click the link above, and then click on and download the PDF for Chapter 2.  Read this chapter for a brief overview of how monetary policy is conducted in the United States.
  
  Reading this chapter should take approximately 30 minutes.
  
  Terms of Use:  This material is in the public domain.

  See a broken link? Please let us know!

• 4.2 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Aggregate Demand”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Aggregate Demand” (HTML)
  
  Instructions: This material will cover subunits 4.2.1-4.2.4.  It covers macroeconomic theory and the Income-Expenditure model.  Important concepts to master in this section are “planned” levels of expenditure, marginal propensity to consume, marginal propensity to save, the multiplier, and the equilibration process.  Please read through section 1.10 (“The Multiplier”).
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 4.2 Reading: Principles of Macroeconomics: “Chapter 13: Consumption and the Aggregate Expenditures Model”

  Link: Principles of Macroeconomics: “Chapter 13: Consumption and the Aggregate Expenditures Model” (PDF)
  
  Instructions: This chapter will cover subunits 4.2.1 and 4.2.2 and will show you how the aggregate demand curve can be derived from the aggregate expenditures model.  Note that aggregate expenditures relate to the summation of “planned” levels of consumption, investment, government purchases, and net exports at a given price level.  Also notice how the slope of the aggregate expenditures curve relates to the multiplier.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 5.1 Reading: Principles of Macroeconomics: “Chapter 12, Section 1: Government and the Economy”

  Link: Principles of Macroeconomics: “Chapter 12, Section 1: Government and the Economy” (PDF)
  
  Instructions: This material elaborates on the major components of government spending and the sources of government revenue.  You will also about the terms budget surplus, budget deficit, balanced budget, and national debt.  Read the section in its entirety, including the introduction, noting trends in the U.S. government’s budget over time.  Lastly, try to answer the questions in the “Try It” box at the end of each section before reviewing the solutions that follow.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 5.2 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 9: Fiscal Policy”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 9: Fiscal Policy” (PDF)
  
  Instructions: On the right side of the navigation bar, click on “Chapter 9: Fiscal Policy.”  This chapter discusses the concepts associated with fiscal policy, and contains an answer key to assess understanding of the material.  Note that this material also covers the topics outlined in subunits 5.2.1-5.2.3.

  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike License.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 5.3 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Aggregate Demand”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Aggregate Demand” (HTML)
  
  Instructions: This material covers subunits 5.3.1-5.3.3.  Scroll through these lecture notes to section 1.12, “Counter Cyclical and Pro-cyclical Policies,” and read all the way up to section 1.15, “Further Notes.”  The government’s fiscal actions can stabilize the business cycle by changing aggregate demand.  This can be done either by an act of Congress requiring a change in a spending program or in a tax law (which are both examples of discretionary fiscal policy), or it can be triggered by the state of the economy (which is known as automatic fiscal policy).  The readings in this subunit will elaborate on the mechanisms of both kinds of policies and will also touch upon the problems that arise when managing fiscal policy.  The following resources will elaborate on the concepts that are presented in this material.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 5.3 Reading: Principles of Macroeconomics: “Chapter 12, Section 2: The Use of Fiscal Policy to Stabilize the Economy”

  Link: Principles of Macroeconomics: “Chapter 12, Section 2: The Use of Fiscal Policy to Stabilize the Economy” (PDF)
  
  Instructions: This material will cover subunits 5.3.1 and 5.3.2.  Read all of section 2 to learn about how the government’s fiscal actions influence aggregate demand.  This section first discusses automatic stabilizers and how they function.  The chapter then covers discretionary fiscal policy, which are changes in aggregate demand resulting from changes in government purchases, income taxes, and transfer payments.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 5.3.3 Reading: Principles of Macroeconomics: “Chapter 12, Section 3: Issues in Fiscal Policy”

  Link: Principles of Macroeconomics: “Chapter 12, Section 3: Issues in Fiscal Policy” (PDF)
  
  Instructions: Read all of this section, which will outline the problems that can arise in fiscal policy.  This section will also provide you with a brief look at the debate surrounding supply-side economics.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 6.1 Reading: Principles of Macroeconomics: “Chapter 9, Sections 1-2: Nature and Creation of Money”

  Link: Principles of Macroeconomics: “Chapter 9, Sections 1-2: Nature and Creation of Money” (PDF)
  
  Instructions: Read sections 1 and 2 of chapter 9, including the introduction.  This material will cover subunits 6.1, 6.2, and all inclusive sub-subunits.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 6.2.2 Reading: The Federal Reserve’s “Statistical Release H6: Money Stock Measures of Money Supply of M1 and M2 for the Year 2011”

  Link: The Federal Reserve’s “Statistical Release H6: Money Stock Measures of Money Supply of M1 and M2 for the Year 2011” (PDF)
  
  Instructions: This report by the Federal Reserve differentiates between the various levels of the money supply from one period of time to another in order to learn about the growth and wealth of the United States’ economy.
  
  Terms of Use: This work is in the Public Domain.

  See a broken link? Please let us know!

• 6.2.2 Reading: Professor Robert Schenk’s CyberEconomics: “Monetary Policy and Balance Sheets”

  Link: Professor Robert Schenk’s CyberEconomics: “Monetary Policy and Balance Sheets” (HTML)
  
  Instructions: This material explains the money creation process in the economy.
  
  Terms of Use: The linked material above has been reposted by the kind permission of Robert Schenk, and can be viewed in its original form here.  Please note that this material is under copyright and cannot be reproduced in any capacity without explicit permission from the copyright holder.

  See a broken link? Please let us know!

• 6.2.2 Reading: Cengage Learning: William Boyes and Michael Melvin’s Economics: “Chapter 7: Foreign Exchange Market and the Balance of Payments Interactive Quiz”

  Link: Cengage Learning: William Boyes and Michael Melvin’s Economics: “Chapter 7: Foreign Exchange Market and the Balance of Payments Interactive Quiz” (Flash)
   
  Instructions: Click on the links for “Test 1” and “Test 2” beneath Chapter 7 and complete each assessment.  Once you have selected an answer choice, a note at the bottom of the screen will indicate whether or not your choice was correct.
   
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 6.3.1 Reading: Federalreserveeducation.org’s “History of the Federal Reserve”

  Link: Federalreserveeducation.org’s“History of the Federal Reserve” (PDF)
   
  Instructions: Read this article for a chronological study of how the Federal Reserve System came into being.
   
  Terms of Use: The above material is reposted from federalreserveeducation.org.  The original version can be found here.  The content owners have stipulated that this material can be freely used and shared for the purpose of education, provided that users comply with the terms of use outlined here.

  See a broken link? Please let us know!

• 6.3.2 Reading: Principles of Macroeconomics: “Chapter 9, Section 3: The Federal Reserve System”

  Link: Principles of Macroeconomics: “Chapter 9, Section 3: The Federal Reserve System” (PDF)
  
  Instructions: Read section 3 of chapter 9, which will cover subunits 6.3.2 and 6.3.3.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 6.4 Reading: Federal Reserve Bank of New York's “Monetary Policy”

  Link: Federal Reserve Bank of New York’s “Monetary Policy” (PDF)
  
  Instructions: Read the section entitled “How does the Federal Reserve implement monetary policy?”  This material will cover subunits 6.4.1-6.4.3.
  
  Terms of Use: The above material is reposted from http://www.federalreserve.gov.  The content owners have stipulated that this material can be freely used and shared for the purpose of education, provided that users comply with the terms of use outlined here.

  See a broken link? Please let us know!

• 6.4.3 Reading: Principles of Macroeconomics: “Chapter 10: Financial Markets and the Economy”

  Link: Principles of Macroeconomics: “Chapter 10: Financial Markets and the Economy” (PDF)
  
  Instructions: Read this chapter its entirety to learn how financial markets fit into the model of aggregate demand and aggregate supply and how they relate to the real GDP level as well as the price level.  The money market model explains the determination of equilibrium rate of interest.  This reading will cover subunits 6.4.4-6.5 and all inclusive sub-subunits.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 6.6.2 Reading: Massachusetts Institute of Technology News: Peter Dizike’s “Explained: Quantitative Easing”

  Link: Massachusetts Institute of Technology News: Peter Dizike’s “Explained: Quantitative Easing” (PDF)
  
  Instructions: Read the entire article to learn one of the unconventional policies that the government can adopt to stabilize the financial system in the economy.
  
  

  Terms of Use: Terms of Use: The above material is reposted from MIT News. The original version can be found here. The content owners have stipulated that this material may be republished provided that users comply with the terms outlined here. Reprinted with permission of MIT News (http://web.mit.edu/newsoffice/).

  See a broken link? Please let us know!

• 7.1 Reading: Professor Tancred Lidderdale’s Introduction to Macroeconomics: “Chapter 6: Unemployment and the Labor Market”

  Link: Professor Tancred Lidderdale’s Introduction to Macroeconomics: “Chapter 6: Unemployment and the Labor Market” (HTML)
  
  Instructions: Click on “Introduction to Macroeconomics” and then on the “Lecture Notes” link for Chapter 6.  Scroll down to section 2A to read the relevant material for this topic.  This reading covers section 7.1.1 and 7.1.2.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 7.2 Reading: The University of North Carolina at Chapel Hill: Professor William R. Parke’s “Macroeconomics Models and Issues”

  Link: The University of North Carolina at Chapel Hill: Professor William R. Parke’s “Macroeconomics Models and Issues” (HTML)
  
  Instructions: Click on the “Classical Models” and the “Keynesian Models” to learn how macroeconomic models have changed over time.  Read “Classical Models” in its entirety, and read the “Overview,” “The Simple Keynesian Model,” and “The IS/LM Model” sections in “Keynesian Models.”
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 7.2 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 7: Classical – Keynesian Controversy”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 7: Classical – Keynesian Controversy” (PDF)
  
  Instructions: Read this chapter in its entirety.  This chapter also covers the topics outlined in sub-subunits 7.2.1 and 7.2.2.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike License.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 7.2.3 Reading: Professor Robert Schenk’s CyberEconomics: “Resource Markets”

  Link: Professor Robert Schenk’s CyberEconomics: “Resource Markets” (HTML)
  
  Instructions: Read the “Sticky Wages” article.  Be sure to click on “Review” to answer two questions that will test your understanding of the concept.
  
  Terms of Use: The linked material above has been reposted by the kind permission of Robert Schenk, and can be viewed in its original form here.  Please note that this material is under copyright and cannot be reproduced in any capacity without explicit permission from the copyright holder.

  See a broken link? Please let us know!

• 7.3 Reading: Principles of Macroeconomics: Chapter 16: "Inflation and Unemployment", Sections 2-3

  Link: Principles of Macroeconomics: “Chapter 16, Sections 2-3: Inflation and Unemployment” (PDF)
  
  Instructions: Read Chapter 16, which will teach you about the Phillips curve, a short-run tradeoff between inflation and unemployment.  This reading covers sections 7.3.1 and 7.3.2.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 8.1 Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on Principles of Macroeconomics: “Economic Growth”

  Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on Principles of Macroeconomics: “Economic Growth” (HTML)
  
  Instructions: Read this material in its entirety to for a summary of how aggregate output is measured using GDP and other related macroeconomic variables.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 8.1 Reading: PEOI.org: John Petroff’s Macroeconomics: “Chapter 15: Economic Growth”

  Link: PEOI.org: John Petroff’s Macroeconomics: “Chapter 15: Economic Growth” (PDF)
   
  Instructions: Complete the linked reading, keeping in mind that economic growth is the sum total of all the components of exploring, discovering, solving problems, sharing ideas, and solving problems of a macroeconomic system.  The author’s presentation of economic growth will serve as a nice wrap-up of the various components studied in macroeconomics.
   
  Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike License.  You can find the original version of this article here.

  See a broken link? Please let us know!

• 8.1 Reading: biz/ed’s Virtual Worlds: “Costs of Growth - Who Pays?”

  Link: biz/ed’s Virtual Worlds: “Costs of Growth - Who Pays?” (HTML)
  
  Instructions: Read this article to learn about the costs associated with growth.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 8.2 Reading: biz/ed’s Virtual Worlds: “Sources of Growth - Where Does It Come From?”

  Link: biz/ed’s Virtual Worlds: “Sources of Growth - Where Does It Come From?” (HTML)
  
  Instructions: Read this article to learn about the conditions needed for economic growth.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 8.2 Reading: Principles of Macroeconomics: “Chapter 2, Section 1: Factors of Production”

  Link: Principles of Macroeconomics: “Chapter 2, Section 1: Factors of Production” (PDF)
  
  Instructions: Read this section to learn about the conditions needed for economic growth.  This reading covers subunits 8.2.1-8.2.4.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 8.3 Reading: Bookboon: Peter Jochumzen’s Essentials of Macroeconomics

  Link: Bookboon: Peter Jochumzen’s Essentials of Macroeconomics (PDF)
  
  Instructions: Download this free textbook.  Scroll down to “Chapter 9” on page 59 to learn about theories pertaining to Economic Growth.
  
  This chapter covers the definition of economic growth, the relationship between production function and growth and the subsequent models of growth-the classical model, the neo-classical model and the endogenous growth model.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 8.3 Reading: Worth Publishers: N. Gregory Mankiw’s Macroeconomics, 5th ed.: “Student Tutorial: Chapters 7 and 8”

  Link: Worth Publishers: N. Gregory Mankiw’s Macroeconomics, 5th ed.: “Student Tutorial: Chapters 7 and 8” (PowerPoint)
  
  Instructions: Click on “Chapter 7: Economic Growth I” and “Chapter 8: Economic Growth II” to study the theory of economic growth, paying particular attention to the Solow model.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 8.4 Reading: The Saylor Foundation: EconomyWatch’s “U.S. Economic Profile”

  Link: The Saylor Foundation: EconomyWatch’s “U.S. Economic Profile” (PDF)
  
  Instructions: Please read this article on the trend of real GDP growth rate in the United States.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 8.4 Reading: Board of Governors of the Federal Reserve System: Chairman Ben S. Bernanke’s “Speech Transcript: U.S. Economic Growth Outlook”

  Link: Board of Governors of the Federal Reserve System: Chairman Ben S. Bernanke’s “Speech Transcript: U.S. Economic Growth Outlook” (PDF)
  
  Instructions: Read the transcript of Federal Reserve Chairman Ben S. Bernanke’s speech from the International Monetary Conference in Atlanta, Georgia in 2011.  It provides an excellent illustration of the ways in which the economies of the world are linked.  In his speech, Bernanke shares views on macroeconomic indicators including aggregate output, GDP, unemployment, and inflation.  He also discusses the ways in which economic growth in the U.S. is affected.
  
  Terms of Use: This work is in the public domain.

  See a broken link? Please let us know!

• 9.1 Reading: Principles of Macroeconomics: “Chapter 19, Sections 1-2: Economic Development”

  Link: Principles of Macroeconomics: “Chapter 19, Sections 1-2: Economic Development” (PDF)
  
  Instructions: Read this chapter to learn about the definition and characteristics of less developed countries and the Malthusian theory of population growth.  This reading will cover subunits 9.1.1-9.1.3.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 9.2 Reading: The World Bank’s Beyond Economic Growth: “Chapter XVII: Development Goals and Strategies”

  Link: The World Bank’s Beyond Economic Growth: “Chapter XVII: Development Goals and Strategies” (HTML)
   
  Instructions: Read this chapter in its entirety; it explains what the United Nations has planned for combating poverty around the world as part of its Millennium Development Goals.  Use the in-text links to view the definitions of any terms or concepts that you do not understand.
   
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 9.3 Reading: Principles of Macroeconomics: “Chapter 19, Section 3: Keys to Economic Development”

  Link: Principles of Macroeconomics: “Chapter 19, Section 3: Keys to Economic Development” (PDF)
  
  Instructions: Read this section to study how an economy can progress towards economic development.  This reading covers sub-subunits 9.3.1-9.3.4.
  
  Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.

  See a broken link? Please let us know!

• 10.1 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Introduction to Trade Theory”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Introduction to Trade Theory” (HTML)
  
  Instructions: Read these lecture notes to get a brief overview on trade theory.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 10.2 Reading: The Saylor Foundation: Wikipedia’s “Absolute Advantage”

  Link: The Saylor Foundation: Wikipedia’s “Absolute Advantage” (PDF)
  
  Instructions: Read this article, which examines Adam Smith’s theory of absolute advantage.
  
  Terms of Use: The article above is released under a Creative Commons Attribution-Share-Alike License 3.0.  You can find the original Wikipedia version of this article here.

  See a broken link? Please let us know!

• 10.3 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Ricardian Trade Theory”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Ricardian Trade Theory” (HTML)
  
  Instructions: Read these lecture notes to learn about Ricardian trade theory.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 10.4 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Heckscher-Ohlin-Samuelson Trade Theory”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Heckscher-Ohlin-Samuelson Trade Theory” (HTML)
  
  Instructions: Read these lecture notes to learn about Heckscher-Ohlin-Samuelson trade theory.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 10.5.1 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Tariffs”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Tariffs” (HTML)
  
  Instructions: Read these lecture notes to learn about tariffs in trade theory.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!

• 10.5.2 Reading: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Quotas”

  Link: University of Washington: Professor Colin Danby’s Macroeconomics Teaching Notes: “Quotas” (HTML)
  
  Instructions: Read these lecture notes to learn about quotas in trade theory.
  
  Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

  See a broken link? Please let us know!