Macroeconomics (Third Edition)

Author: Liang Dongli
Publisher:
Publish Date: 2004-03-01
Features: This book is the third edition of Macroeconomics. This edition includes significant additions and deletions. The formalized expression of the "Keynesian Revolution" in Chapter 3 and the detailed analysis of the life-cycle hypothesis in Chapter 5 have been removed. The additions primarily involve further elaboration on existing theoretical content rather than introducing new theories, such as new growth theory. For example, Chapter 4 discusses the multiplier theory, Chapter 10 analyzes policy effects, and Chapter 11 examines the equilibrium of aggregate quantities.
The book consists of four fundamental models: the simple Keynesian model, the two-market model, the aggregate supply-demand model, and the open economy model. The simple Keynesian model is abstract, becoming progressively more concrete thereafter. For a closed economy, the aggregate supply-demand model is the final completed model. The reason the simple Keynesian model is considered abstract mainly lies in its exclusion of interest rates and, consequently, monetary factors' influence on aggregate demand and total output, as well as its consideration of various scenarios in aggregate supply.