Macroeconomics is kind of a big deal. Without it, we wouldn't have the ability to study the economy as a whole—which is something that affects almost every aspect of your life, whether you realize it or not. From your employment status to how much you earn and pay in taxes, macroeconomics really matters. Breaking down this complicated and fascinating topic into manageable pieces, Macroeconomics For Dummies gives you fast and easy access to a subject that has a tendency to stump the masses.

With the help of this plain-English guide, you'll quickly find out how to gather data about economies to inform hypotheses on everything from the impact of cutting government spending to the underlying causes of recessions and high inflation.

• Analyze business cycles for overall economic health
• Study economic indicators such as unemployment
• Understand financial trends on the international market
• Score higher in your macroeconomics class

Filled with step-by-step instruction and enlightening real-world examples, this is the only book you need to slay the beast and make macroeconomics your minion!

Daniel Richards, PhD, is a professor of economics at Tufts University. He received his PhD from Yale University.

Manzur Rashid, PhD, has taught economics at University College London and Cambridge University.

Peter Antonioni is a senior teaching fellow at University College London.

Introduction 1

Part 1: Getting Started with Macroeconomics 5

CHAPTER 1: Discovering Why Macroeconomics Is a Big Deal 7

CHAPTER 2: Looking at Key Questions and Concepts 27

CHAPTER 3: The Short Run and the Long Run 43

Part 2: Measuring the Things That Matter 59

CHAPTER 4: Adding Up Gross Domestic Product 61

CHAPTER 5: Facing the Fact of Increasing Prices: Inflation 81

CHAPTER 6: Thinking About Interest Rates 103

CHAPTER 7: Unemployment: Wasting Talent and Productivity 125

Part 3: The Long-Run Macro Economy 145

CHAPTER 8: GDP Growth in the Long Run 147

CHAPTER 9: Long-Run Prices and Interest Rates 163

Part 4: Modeling the Short-Run Macro Economy 181

CHAPTER 10: Working Out a Country’s Economic Demand 183

CHAPTER 11: Determining How Much Stuff an Economy Produces 201

CHAPTER 12: Using the AD–AS Model to Analyze Economic Shocks 217

Part 5: Examining Macroeconomic Policy 239

CHAPTER 13: Macroeconomic Policies for the Long Run 241

CHAPTER 14: Monetary Policy and the Short-Run Economy 257

CHAPTER 15: Fiscal Policy: Balancing the Books — Perhaps 275

CHAPTER 16: Unemployment and Inflation: The Phillips Curve 295

Part 6: Understanding the Financial Crisis 315

CHAPTER 17: Strengths and Weaknesses of the Financial System 317

CHAPTER 18: Learning from the 2007–08 Financial Crisis 335

Part 7: The Part of Tens 355

CHAPTER 19: Getting to Know Ten Great Macroeconomists 357

CHAPTER 20: Ten Top Tips to Take Away 367

Index 375