Macroeconomics

This textbook concerns the wonderful world of macroeconomics, or economics on a very large scale, concerning national and international systems. It serves as an introduction to macroeconomics, and is primarily aimed at students in their final few years of secondary education, though it could also be used by interested students younger or older than that. See Intermediate Macroeconomic Theory for learning more advanced macroeconomics.

Knowledge of microeconomics would be useful and preferred, but grasping overall concepts does not require an in depth previous knowledge. See Principles of Economics for a brief introduction to both microeconomics and macroeconomics and Principles of Microeconomics for learning introductory microeconomics.

It is worth remembering that this textbook can be edited at any time, with the link at the top of this page. This is both good and bad - you yourself, having spotted a mistake or having noticed a poor definition, can correct it and should feel free to do so. The bad side is that anyone can edit it, so content may be inaccurate while the wikibook is in its infancy!

Contents

Section Article
Introduction   Macroeconomic Objectives  

Measuring Economic Activity  
Macroeconomic Equilibrium  
Role of Savings and Investment  


Employment and Unemployment   Definitions of Unemployment  

Types and Causes of Unemployment  
Consequences of Unemployment  
Policies to Reduce Unemployment  


Macroeconomic Variables   Aggregate Expenditures  

Multiplier Process  
Expanded Multipliers  
Aggregate Demand  

Aggregate Supply  
Macroeconomic Equilibrium in the Short Run and the Long Run


Money and Inflation  Effects of Interest Rates on Real GDP 
Economic Policy   Government Spending   (included in Fiscal Policy)

Taxation  
Fiscal Policy  
Monetary Policy  
Supply-side Policy  
Central Banks  


Government Intervention  Market Failure  

Methods of Government Intervention  
Government Failure  


International Economics 

Alternate Perspectives  Radical Economics  
Advanced Topics   Math Review  

Keynesian Demand-side Economics and Multipliers  
Optimal Growth  
Harrod-Johnson Diagram  


Glossary of Terms 

Proposed change

  1. Economics - Introduction to economics
  2. Market Economics - Basics of market economics, resources, and production possibilities
  3. Supply and Demand - Supply and Demand for single products
  4. Measuring Domestic Output - Gross Domestic Product and other indicators
  5. Open Economies - International trade
  6. Business Cycle - Basics of unemployment, inflation, and economic growth
  7. Aggregate Expenditures - Consumption, Investment, Government spending, and Exports
  8. Aggregate Supply and Demand - Basics of how an entire economy functions
  9. Fiscal Policy
  10. Money - How money is created and why it works
  11. Monetary Policy
  12. Government Finances

Advanced topics

  1. Math Review
  2. Keynesian Demand-side Economics and Multipliers
  3. Optimal Growth
  4. Harrod-Johnson Diagram

Useful background reading

The following links will lead you to Wikipedia, the online encyclopedia similar in style to this site. The information in these articles may go above and beyond that which you need to know for this book, though they will undoubtedly prove useful to refer back to from time to time, and are good portals to more relevant articles.

External links

The following links take you to useful websites for learning, revising or expanding your knowledge:

For contributors

Any and all corrections, additions, alterations etc. are always welcome! If you wish some credit for your work, stick your name below :

Name Contribution
Evgeniy Chernyshov Inflation, Fiscal Policy, Monetary Policy
Jacob Taylor The Entire Glossary