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Principles of Macroeconomics is designed for a one-semester macroeconomics introductory course. It is traditional in coverage, including introductory economics content, macroeconomics, and international economics. At the same time, the book includes a number of innovative and interactive features designed to enhance student learning. Instructors can also customize the book, adapting it to the approach that works best in their classroom.

Welcome to Principles of Macroeconomics , an OpenStax resource. This textbook has been created with several goals in mind: accessibility, customization, and student engagement—all while encouraging students toward high levels of academic scholarship. Instructors and students alike will find that this textbook offers a strong foundation in macroeconomics in an accessible format.

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OpenStax is a non-profit organization committed to improving student access to quality learning materials. Our free textbooks go through a rigorous editorial publishing process. Our texts are developed and peer-reviewed by educators to ensure they are readable, accurate, and meet the scope and sequence requirements of today’s college courses. Unlike traditional textbooks, OpenStax resources live online and are owned by the community of educators using them. Through our partnerships with companies and foundations committed to reducing costs for students, OpenStax is working to improve access to higher education for all. OpenStax is an initiative of Rice University and is made possible through the generous support of several philanthropic foundations.

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OpenStax learning resources are designed to be customized for each course. Our textbooks provide a solid foundation on which instructors can build, and our resources are conceived and written with flexibility in mind. Instructors can select the sections most relevant to their curricula and create a textbook that speaks directly to the needs of their classes and student body. Teachers are encouraged to expand on existing examples by adding unique context via geographically localized applications and topical connections.

Principles of Macroeconomics can be easily customized using our online platform (http://cnx.org/content/col11626/). Simply select the content most relevant to your current semester and create a textbook that speaks directly to the needs of your class. Principles of Macroeconomics is organized as a collection of sections that can be rearranged, modified, and enhanced through localized examples or to incorporate a specific theme of your course. This customization feature will ensure that your textbook truly reflects the goals of your course.

Questions & Answers

list three possible ways of addressing and adverse balance of payment
Meribah Reply
when MPs is 0.3 and autonomous consumption is 30billion what is d consumption expenditure
queen Reply
what is macroeconomic?
Consumption expenditure becomes: C = 30b + 0.3Y without lump sum tax and C = 30b + 0.3Yd with lump sum tax
Macroeconomics deals with the study of the behavior of aggregate individuals, firms or government in an economy in relation to consumption patterns and decision making
If the government decrases spending by ksh. 500 billion what is the change in output given MPC is 0.75
Gichana Reply
how can policy makers strike the balance between inflation and unemployment?
Oreva Reply
c=800 + 0.75y i=500 G=900 compute the equilibrium level of national output
Omar Reply
y=c+I+g+(X-M) y=800+.75y+500+900+0 y-.75y=2200 .25y=2200 y=2200/.25 y=8800=national level of output
Please tell me the current crr, repo rate etc
Ranjeeta Reply
cash reserve ratio is the amount that is deposit by the commercial bank in Central bank.... n repo rate is a loan interest amount
what is slr madam sahar
jo amount bank reserve rakhti hai bank mai customers k liye jese ATM mai ya bank mai rakha hota hai, wo slr hota hai
pakka sahi hai
good joke
Argentina Lose !!😭😭
SLR refers to that portion of total deposits of a commercial bank which it has to keep with itself in the form of cash reserve
What is cash crop?
Ranjeeta Reply
commeciaal crops
So jowar is not cash crop?
anything which is plant inorder to sell in the market
How demand deposits are different from savings?
can unemployment be a factor of inflation?
David Reply
yeah it has an impact on cost push inflation
microeconomics is individual firms and macroeconomics is a large as a full
kendra Reply
That's true 👍
word micro means small and tiny part. word macro means large and big part.
is unemployment another cause of inflation?
can I say unemployment can cause inflation?
no. unemployment can possibly lead to deflation
if their are no production am I correct to say inflation will occurs
one of the causes of inflation is excess demand. if there's no production there would be no demand so no inflation
if we take a look at inflation, it occur because of low production. High price chasing few goods.
So are you saying demand creates supply?
to an extent because if s9mething is demanded, it's likely to be supplied
OK am still confused, if there is unemployment low production, and employment high production, inflation high increase in price, how can production be high and we are faced with inflation? When inflation is referred to higher price chasing few goods.
if the demand is increased , what is the graphics on it?
Tadesse Reply
what is macroeconomics
Prosenjit Reply
large-scale economics, such as interest rates or the gross national national product rate of of a country
Macroeconomics: is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.
well said
hello everyone, would like to ask a favor... i need your help to answer this problem: Assume that equilibrium GDP is 400B; potential GDP is 500B, the marginal propensity to consume is 9/10, the interest rate is 8%, investment spending is P20B, the money supply is 120B, and the reserve requirement
is 1/10. By how much and in what direction should the Fed change the monetary base?
what are the factors that influence surplus budget? and its effects
Christopher Reply
what is credit creation
how monetary and fiscal policy affect money supply? on economy
Christopher Reply
what is hyperinflation
David Reply
what is stagflation
in an economy when there is both inflation & unemployment prevailing at the same time.
@david - hyperinflation is very rapid inflation; it is sometimes reckoned to set in when price increases exceed 50 percent per month. Such rapid inflation not merely makes money useless as a store of value, but seriously affects its use as a medium of exchange
@yogesh: the one you are describing is Stagflation
I was answering to Riaz's querry.
Sorry, didn't see the question
what is credit creation?
what are the factors that influencing surplus budget
may I ask master level questions on this chat?
saddiq Reply
am so confused about the concept of scarcity. can u hlp me
 · Concepts of Scarcity. Scarcity refers to the condition of insufficiency where the human beings are incapable to fulfill their wants in sufficient manner. In other words, it is a situation of fewer resources in comparison to unlimited human wants. Human wants are unlimited.
what is PPC
Production possibility curve is a curve that shows different possibilities of production of a set of two good which can be produced with the given resources
micro vs macro which is complex in your view?

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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