At each point in time, individuals in an economy are making choices with respect to the acquisition, sale, and/or use of a variety of different goods. Such activity can be summarized by aggregate variables such as an economy's total production of various goods and services, the aggregate level of unemployment, the general level of interest rates, and the overall level of prices. Macroeconomics is the study of movements in such economy wide variables as output, employment, and prices. The focus of this book is on developing simple theoretical models that provide insight into the reasons for fluctuations in such aggregate variables. These models explore how shocks or "impulses" to the economy (e.g., changes to technology, the money supply, or government policy) impact individuals' behavior in specific markets and the resulting implications in terms of changes in aggregate variables. This book will provide the reader with an in-depth understanding of standard...

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