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Optional Material

Most of these sections are here because they are too technical for most introductory students. The heavy dose of macroeconomic sections is partly a result of a re-writing of the ending of the macroeconomic part, trying to get a more compact ending. If there are other reasons for putting pages here, those reasons are explained in the notes.

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Notes:

Micro Chapters:


Efficiency

 

Efficiency and Markets
Efficiency and Markets II

These two sections were replaced with the section called Economic Efficiency in a Nutshell

Government and Efficiency

Taxing with Inflation

This section was originally after the Politics of Taxation and before the Efficiency of An Excise Tax.


Macro Chapters:

Economic Catastrophes

 

Past Sense

 

This section suggests that a sense of the past is important in macroeconomics.

Financial Markets

 

Balance of Payments

This was originally the last section of the chapter.

Money Matters

 

Limitations of the Quantity Theory

This is material that seemed a too technical for an introductory course.

Business Cycle Theories

 

Cycles Recycled

This section is marginal in a chapter that many will consider marginal itself. It was originally the conclusion to the chapter.

The Multiplier Model

 

The Textbook View
Technical Appendix

This material is here because it is too technical for the flow of the chapter. The section Textbook View was originally between Different Views and the Paradox of Thrift.

Looking For Synthesis

Overview

The IS Curve
The LM Curve
Combining IS And LM Curves
Limitations of the ISLM Model
Aggregate Demand and Aggregate Supply
Sample Quiz
Technical Appendix

This chapter explains ISLM, a model that is rarely taught in principles of macroeconomics. Hence the whole chapter is optional.

Problems of Feedback

Overview

Consumption and Investment
The Case for Monetary Aggregates
Interpretations II

Most of the material that was originally in this chapter was split up and put into the last two chapters, along with some new material. Hence, the original chapter no longer exists

Stabilization Policy?

Overview

Stabilization Policy
Decision Lags
Other Stabilization Problems

Most of the material that was originally in this chapter was split up and put into the last two chapters, along with some new material. Hence, the original chapter no longer exists

Final Thoughts

Overview

Frameworks of Analysis
Money Is Important
Expectations Affect Behavior
We Are Not Alone
Concluding Notes

This was originally the final chapter. After extensive revision to earlier chapters, it no longer fit very well. Time to move it here.

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