Macroeconomics

This seventh edition of Macroeconomics represents a completely revised and rewritten edition of Dernburg and McDougall's textbook. Because it is designed to serve students at the intermediate level, the center of attention continues to be the Keynes-Hicks income expenditure model. This is now, however, augmented with extended treatment of aggregate supply in order to permit a complete analysis involving prices as well as quantities. Dynamic aggregate demand and supply functions are derived explicitly and are presented for use in the analysis of the inflation-stagflation process.

The building block approach of earlier editions has been retained. However, the central organizing principle is now somewhat different. Whereas the theoretical core of comparative static macroeconomic analysis had been presented in Part Two, with dynamics reserved for Part Three, Part Two is now used to develop the income-expenditure side, culminating in the aggregate demand function. Part Three then adds aggregate supply and integrates this with aggregate demand so that the inflation-stagflation process can be treated within a unified framework. Economic growth fits into Part Three as a long-run aggregate supply problem.