Solution Manuals For Principles of Macroeconomics, 8th Canadian Edition N. Gregory Mankiw

Name: Solution Manuals For Principles of Macroeconomics, 8th Canadian Edition N. Gregory Mankiw
SKU: 10537
Price: 30.00 USD
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$30.00

ISBN-10: 0176872833

ISBN-13: 9780176872830

Category: Economics

Description

Cover
Title
Copyright
About the Authors
Brief Contents
Contents
Preface
Acknowledgments
PART 1 INTRODUCTION
CHAPTER 1 Ten Principles of Economics
1-1 How People Make Decisions
1-1a Principle #1: People Face Tradeoffs
1-1b Principle #2: The Cost of Something Is What You Give Up to Get It
1-1c Principle #3: Rational People Think at the Margin
1-1d Principle #4: People Respond to Incentives
In the News: Even Criminals Respond to Incentives
Case Study: Ready, Set, Go . . .
1-2 How People Interact
1-2a Principle #5: Trade Can Make Everyone Better Off
1-2b Principle #6: Markets Are Usually a Good Way to Organize Economic Activity
Case Study: Adam Smith Would Have Loved Uber
1-2c Principle #7: Governments Can Sometimes Improve Market Outcomes
1-3 How the Economy as a Whole Works
1-3a Principle #8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services
1-3b Principle #9: Prices Rise When the Government Prints Too Much Money
1-3c Principle #10: Society Faces a Short-Run Tradeoff between Inflation and Unemployment
1-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 2 Thinking Like an Economist
2-1 The Economist as Scientist
2-1a The Scientific Method: Observation, Theory, and More Observation
2-1b The Role of Assumptions
2-1c Economic Models
2-1d Our First Model: The Circular-Flow Diagram
2-1e Our Second Model: The Production Possibilities Frontier
2-1f Microeconomics and Macroeconomics
2-2 The Economist as Policy Adviser
2-2a Positive versus Normative Analysis
2-2b Economists in Ottawa
2-2c Why Economists’ Advice Is Not Always Followed
2-3 Why Economists Disagree
2-3a Differences in Scientific Judgments
2-3b Differences in Values
2-3c Perception versus Reality
Ask the Experts: Ticket Resale
2-4 Let’s Get Going
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
Appendix Graphing: A Brief Review
Graphs of a Single Variable
Graphs of Two Variables: The Coordinate System
Curves in the Coordinate System
Slope
Graphing Functions
Cause and Effect
Omitted Variables
Reverse Causality
Problems and Applications
CHAPTER 3 Interdependence and the Gains from Trade
3-1 A Parable for the Modern Economy
3-1a Production Possibilities
3-1b Specialization and Trade
3-2 Comparative Advantage: The Driving Force of Specialization
3-2a Absolute Advantage
3-2b Opportunity Cost and Comparative Advantage
3-2c Comparative Advantage and Trade
FYI: The Legacy of Adam Smith and David Ricardo
3-2d The Price of Trade
3-3 Applications of Comparative Advantage
3-3a Should Connor McDavid Shovel His Own Sidewalk?
In the News: The Future of Free Trade in Canada
3-3b Should Canada Trade with Other Countries?
Ask the Experts: Trade with China
3-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
PART 2 HOW MARKETS WORK
CHAPTER 4 The Market Forces of Supply and Demand
4-1 Markets and Competition
4-1a What Is a Market?
4-1b What Is Competition?
4-2 Demand
4-2a The Demand Curve: The Relationship between Price and Quantity Demanded
4-2b Market Demand versus Individual Demand
4-2c Shifts in the Demand Curve
Case Study: Two Ways to Reduce the Quantity of Smoking Demanded
4-3 Supply
4-3a The Supply Curve: The Relationship between Price and Quantity Supplied
4-3b Market Supply versus Individual Supply
4-3c Shifts in the Supply Curve
4-4 Supply and Demand Together
4-4a Equilibrium
4-4b Three Steps to Analyzing Changes in Equilibrium
Case Study: Marijuana Legalization
In the News: Supply, Demand, and Technology
4-5 Conclusion: How Prices Allocate Resources
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
Appendix the Mathematics of Market equilibrium
Problems and Applications
PART 3 THE DATA OF MACROECONOMICS
CHAPTER 5 Measuring a Nation’s Income
5-1 The Economy’s Income and Expenditure
5-2 the Measurement of Gross Domestic product
5-2a “GDP Is the Market Value …”
5-2b “… Of All …”
5-2c “… Final …”
5-2d “… Goods and Services …”
5-2e “… Produced …”
5-2f “… Within a Country …”
5-2g “… In a Given Period of Time”
5-3 the Components of GDP
5-3a Consumption
5-3b Investment
5-3c Government Purchases
5-3d Net Exports
Case Study: The Components of Canadian GDP
5-4 real versus Nominal GDP
5-4a A Numerical Example
5-4b The GDP Deflator
Case Study: Real GDP over Recent History
5-5 GDp and Economic Well-Being
FYI: Canada’s Official Poverty Line
Case Study: Measuring Economic Well-Being in Canada
Case Study: International Differences in GDP and the Quality of Life
In the News: Identifying the 1 Percent
5-6 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 6 Measuring the Cost of Living
6-1 The Consumer Price Index
6-1a How the Consumer Price Index Is Calculated
6-1b Problems in Measuring the Cost of Living
FYI: What Is in the CPI’s Basket?
6-1c The GDP Deflator versus the Consumer Price Index
6-2 Correcting Economic Variables for the Effects of Inflation
6-2a Dollar Figures from Different Times
FYI: The Bank of Canada’s Inflation Calculator
Case Study: Mr. Index Goes to Hollywood
6-2b Indexation
6-2c Real and Nominal Interest Rates
Case Study: Interest Rates in the Canadian Economy
6-3 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
PART 4 THE REAL ECONOMY IN THE LONG RUN
CHAPTER 7 Production and Growth
7-1 Economic Growth Around the World
FYI: Are You Richer Than the Richest American?
7-2 Productivity: Its Role and Determinants
7-2a Why Productivity Is So Important
7-2b How Productivity Is Determined
FYI: The Production Function
Case Study: Are Natural Resources a Limit to Growth?
7-3 Economic Growth and Public Policy
7-3a The Importance of Saving, Investment, and Stable Financial Markets
7-3b Diminishing Returns and the Catch-Up Effect
7-3c Investment from Abroad
7-3d Education
In the News: Using Experiments to Evaluate Aid
7-3e Health and Nutrition
7-3f Property Rights and Political Stability
7-3g Free Trade
In the News: One Economist’s Answer
7-3h Research and Development
Case Study: Productivity Slowdowns and Speedups
7-3i Population Growth
Ask the Experts: Innovation and Growth
7-4 Conclusion: The Importance of Long-Run Growth
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 8 Saving, Investment, and the Financial System
8-1 Financial Institutions in the Canadian Economy
8-1a Financial Markets
FYI: How to Read Stock Tables
8-1b Financial Intermediaries
8-1c Summing Up
8-2 Saving and Investment in the National Income Accounts
FYI: Financial Institutions in Crisis
8-2a Some Important Identities
8-2b The Meaning of Saving and Investment
8-3 The Market for Loanable Funds
8-3a Supply and Demand for Loanable Funds
8-3b Policy 1: Saving Incentives
8-3c Policy 2: Investment Incentives
8-3d Policy 3: Government Budget Deficits and Surpluses
Ask the Experts: Fiscal Policy and Saving
Case Study: The Accumulation of Government Debt in Canada
FYI: How Large Is Government Debt?
8-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 9 Unemployment and Its Natural Rate
9-1 Identifying Unemployment
9-1a How Is Unemployment Measured?
Case Study: Labour-Force Participation of Women in the Canadian Economy
9-1b Does the Unemployment Rate Measure What We Want It To?
FYI: The Employment Rate
9-1c How Long Are the Unemployed without Work?
9-1d Why Are There Always Some People Unemployed?
FYI: A Tale of Two Recessions
9-2 Job Search
9-2a Why Some Frictional Unemployment Is Inevitable
9-2b Public Policy and Job Search
9-2c Employment Insurance
9-3 Minimum-Wage Laws
FYI: Who Earns the Minimum Wage?
9-4 Unions and Collective Bargaining
9-4a The Economics of Unions
9-4b Are Unions Good or Bad for the Economy?
9-5 The Theory of Efficiency Wages
9-5a Worker Health
9-5b Worker Turnover
9-5c Worker Effort
9-5d Worker Quality
Case Study: Henry Ford and the Very Generous $5-a-Day Wage
FYI: Minimum, Efficiency, and Living Wages
9-6 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
PART 5 MONEY AND PRICES IN THE LONG RUN
CHAPTER 10 The Monetary System
10-1 The Meaning of Money
10-1a The Functions of Money
10-1b The Kinds of Money
10-1c Money in the Canadian Economy
In the News: Why Gold?
FYI: Credit Cards, Debit Cards, and Money
Case Study: Where Is All the Currency?
10-2 The Bank of Canada
10-2a The Bank of Canada Act
10-2b Monetary Policy
10-3 Commercial Banks and the Money Supply
10-3a The Simple Case of 100 Percent-Reserve Banking
10-3b Money Creation with Fractional-Reserve Banking
10-3c The Money Multiplier
10-3d Bank Capital, Leverage, and the Financial Crisis of 2007–09
10-3e The Bank of Canada’s Tools of Monetary Control
10-3f Problems in Controlling the Money Supply
FYI: The Bank of Canada’s Response to the 2007–09 Financial Crisis
Case Study: Bank Runs and the Money Supply
10-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 11 Money Growth and Inflation
11-1 The Classical Theory of Inflation
11-1a The Level of Prices and the Value of Money
11-1b Money Supply, Money Demand, and Monetary Equilibrium
11-1c The Effects of a Monetary Injection
11-1d A Brief Look at the Adjustment Process
11-1e The Classical Dichotomy and Monetary Neutrality
11-1f Velocity and the Quantity Equation
Case Study: Money and Prices during Hyperinflations
11-1g The Inflation Tax
FYI: Hyperinflation in Zimbabwe
11-1h The Fisher Effect
11-2 The Costs of Inflation
11-2a A Fall in Purchasing Power? The Inflation Fallacy
11-2b Shoeleather Costs
11-2c Menu Costs
11-2d Relative-Price Variability and the Misallocation of Resources
11-2e Inflation-Induced Tax Distortions
11-2f Confusion and Inconvenience
11-2g A Special Cost of Unexpected Inflation: Arbitrary Redistributions of Wealth
11-2h Inflation Is Bad, but Deflation May Be Worse
Case Study: Money Growth, Inflation, and the Bank of Canada
FYI: Total and Core Inflation and the Bank of Canada’s Inflation Target
11-3 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
PART 6 THE MACROECONOMICS OF OPEN ECONOMIES
CHAPTER 12 Open-Economy Macroeconomics: Basic Concepts
12-1 The International Flows of Goods and Capital
12-1a The Flow of Goods: Exports, Imports, and Net Exports
Case Study: The Increasing Openness of the Canadian Economy
Ask the Experts: Steel and Aluminum Tariffs
12-1b The Flow of Financial Resources: Net Capital Outflow
In the News: Breaking Up the Chain of Production
12-1c The Equality of Net Exports and Net Capital Outflow
FYI: The Current Account Balance
12-1d Saving, Investment, and Their Relationship to the International Flows
12-1e Summing Up
Case Study: Saving, Investment, and Net Capital Outflow of Canada
12-2 The Prices For International Transactions: Real and Nominal Exchange Rates
12-2a Nominal Exchange Rates
12-2b Real Exchange Rates
FYI: The Value of the Canadian Dollar
FYI: The Euro
12-3 A First Theory of Exchange-Rate Determination: Purchasing-Power Parity
12-3a The Basic Logic of Purchasing-Power Parity
12-3b Implications of Purchasing-Power Parity
Case Study: The Nominal Exchange Rate during a Hyperinflation
12-3c Limitations of Purchasing-Power Parity
Case Study: The Hamburger Standard
12-4 Interest Rate Determination in a Small Open Economy with Perfect Capital Mobility
12-4a A Small Open Economy
12-4b Perfect Capital Mobility
12-4c Limitations to Interest Rate Parity
12-5 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 13 A Macroeconomic Theory of the Small Open Economy
13-1 Supply and Demand for Loanable Funds and for Foreign-Currency Exchange
13-1a The Market for Loanable Funds
13-1b The Market for Foreign-Currency Exchange
13-1c Disentangling Supply and Demand in the Market for Foreign-Currency Exchange
FYI: Purchasing-Power Parity as a Special Case
13-2 Equilibrium in the Small Open Economy
13-2a Net Capital Outflow: The Link between the Two Markets
13-2b Simultaneous Equilibrium in Two Markets
13-3 How Policies and Events Affect a Small Open Economy
13-3a Increase in World Interest Rates
FYI: Negative Values of Net Capital Outflow
13-3b Government Budget Deficits and Surpluses
13-3c Trade Policy
13-3d Political Instability and Capital Flight
In the News: The Open-Economy Trilemma
13-3e Currency Manipulation
13-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
PART 7 SHORT-RUN ECONOMIC FLUCTUATIONS
CHAPTER 14 Aggregate Demand and Aggregate Supply
14-1 Three Key Facts about Economic Fluctuations
14-1a Fact 1: Economic Fluctuations Are Irregular and Unpredictable
14-1b Fact 2: Most Macroeconomic Quantities Fluctuate Together
14-1c Fact 3: As Output Falls, Unemployment Rises
14-2 Explaining Short-Run Economic Fluctuations
14-2a The Assumptions of Classical Economics
14-2b The Reality of Short-Run Fluctuations
14-2c The Model of Aggregate Demand and Aggregate Supply
In the News: The Social Influences of Economic Downturns
14-3 The Aggregate-Demand Curve
14-3a Why the Aggregate-Demand Curve Slopes Downward
14-3b Why the Aggregate-Demand Curve Might Shift
Case Study: Housing Wealth
14-4 The Aggregate-Supply Curve
14-4a Why the Aggregate-Supply Curve Is Vertical in the Long Run
14-4b Why the Long-Run Aggregate-Supply Curve Might Shift
14-4c Using Aggregate Demand and Aggregate Supply to Depict Long-Run Growth and Inflation
14-4d Why the Aggregate-Supply Curve Slopes Upward in the Short Run
14-4e Why the Short-Run Aggregate-Supply Curve Might Shift
14-5 Two Causes of Economic Fluctuations
14-5a The Effects of a Shift in Aggregate Demand
FYI: Monetary Neutrality Revisited
Case Study: Big Shifts in Aggregate Demand: Two Depressions and World War II
Case Study: The Recession of 2008–09
14-5b The Effects of a Shift in Aggregate Supply
FYI: The Origins of Aggregate Demand and Aggregate Supply
Case Study: Oil and the Economy
14-6 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 15 The Influence of Monetary Policy on Aggregate Demand
15-1 How Monetary Policy Influences Aggregate Demand
15-1a The Theory of Liquidity Preference
15-1b The Downward Slope of the Aggregate-Demand Curve
15-1c Changes in the Money Supply
15-1d Open-Economy Considerations
FYI: The Zero Lower Bound
Case Study: Why Central Banks Watch the Stock Market (and Vice Versa)
15-2 Using Monetary Policy to Stabilize the Economy
15-2a The Case for Active Monetary Stabilization Policy
15-2b The Case against Active Monetary Stabilization Policy
15-2c The Flexible Exchange Rate as a Stabilizer
Case Study: The Monetary Policy Response to the Recession of 2007–09
15-3 A Quick Summary
FYI: Interest Rates in the Long Run and the Short Run
15-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 16 The Influence of Fiscal Policy on Aggregate Demand
16-1 How Fiscal Policy Influences Aggregate Demand
16-1a Changes in Government Purchases
16-1b The Multiplier Effect
16-1c A Formula for the Spending Multiplier
16-1d Other Applications of the Multiplier Effect
16-1e The Crowding-Out Effect on Investment
16-1f Open-Economy Considerations
16-1g Changes in Taxes
FYI: How Fiscal Policy Might Affect Aggregate Supply
16-2 Using Fiscal Policy to Stabilize the Economy
16-2a The Case for Active Fiscal Stabilization Policy
16-2b The Case against Active Fiscal Stabilization Policy
FYI: How Large Is the Influence of Fiscal Policy on Aggregate Demand?
16-2c Automatic Stabilizers
Case Study: The Fiscal Policy Recession of 2007–09
16-3 A Quick Summary
16-4 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
CHAPTER 17 The Short-Run Tradeoff between Inflation and Unemployment
17-1 The Phillips Curve
17-1a Origins of the Phillips Curve
17-1b Aggregate Demand, Aggregate Supply, and the Phillips Curve
17-2 Shifts in the Phillips Curve: The Role of Expectations
17-2a The Long-Run Phillips Curve
17-2b The Meaning of “Natural”
17-2c Reconciling Theory and Evidence
17-2d The Short-Run Phillips Curve
17-2e The Natural Experiment for the Natural-Rate Hypothesis
17-3 Shifts in the Phillips Curve: the Role of Supply Shocks
17-4 The Cost of Reducing Inflation
17-4a The Sacrifice Ratio
17-4b Rational Expectations and the Possibility of Costless Disinflation
FYI: Measuring Expectations of Inflation
17-4c Disinflation in the 1980s
17-4d The Zero-Inflation Target
In the News: How to Keep Expected Inflation Low
17-4e Anchored Expectations
17-4f The 2008–09 Recession
17-5 Looking Ahead
17-6 Conclusion
Summary
Key Concepts
Questions for Review
Quick Check Multiple Choice
Problems and Applications
PART 8 FINAL THOUGHTS
CHAPTER 18 Five Debates over Macroeconomic Policy
18-1 Should Monetary and Fiscal Policymakers Try to Stabilize the Economy?
18-1a Pro: Policymakers Should Try to Stabilize the Economy
18-1b Con: Policymakers Should Not Try to Stabilize the Economy
18-2 Should Monetary Policy Be Made by an Independent Central Bank?
18-2a Pro: Monetary Policy Should Be Made by an Independent Central Bank
18-2b Con: Monetary Policy Should Not Be Made by an Independent Central Bank
18-3 Should the Central Bank Aim for Zero Inflation?
18-3a Pro: The Central Bank Should Aim for Zero Inflation
18-3b Con: The Central Bank Should Not Aim for Zero Inflation
FYI: Price-Level Targeting
18-4 Should Governments Balance Their Budgets?
18-4a Pro: Governments Should Balance Their Budgets
18-4b Con: Governments Should Not Balance Their Budgets
FYI: Progress on Debt Reduction?
18-5 Should the Tax Laws Be Reformed to Encourage Saving?
18-5a Pro: The Tax Laws Should Be Reformed to Encourage Saving
18-5b Con: The Tax Laws Should Not Be Reformed to Encourage Saving
18-6 Conclusion
Summary
Questions for Review
Quick Check Multiple Choice
Problems and Applications
Glossary
Index

Solution Manuals For Principles of Macroeconomics, 8th Canadian Edition N. Gregory Mankiw

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