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Macroeconomics for Managers
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Macroeconomics for managers
Macroeconomics for managers
Michael K. Evans
 
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© 2004 by Michael K. Evans
350 Main Street, Malden, MA 02148-5020, USA
108 Cowley Road, Oxford OX4 1JF, UK
550 Swanston Street, Carlton, Victoria 3053, Australia
The right of Michael K. Evans to be identified as the Author of this Work has been
asserted in accordance with the UK Copyright, Designs, and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, except as permitted by the UK Copyright,
Designs, and Patents Act 1988, without the prior permission of the publisher.
First published 2004 by Blackwell Publishing Ltd
Library of Congress Cataloging-in-Publication Data
Evans, Michael K.
Macroeconomics for managers / Michael K. Evans.
p. cm.
Includes bibliographical references and index.
ISBN 1-4051-0144-X (hardcover : alk. paper) – 1-4051-0145-8 (pbk. : alk. paper)
1. Managerial economics. 2. Macroeconomics. I. Evans, Michael K.
HD30.22.E85 2003
339/.024/68–21
2002156369
A catalogue record for this title is available from the British Library.
Set in 10/12 2 Book Antiqua
by Newgen Imaging Systems (P) Ltd, Chennai, India
Printed and bound in the United Kingdom
by TJ International, Padstow, Cornwall
For further information on
Blackwell Publishing, visit our website:
http://www.blackwellpublishing.com
Contents
Preface and Acknowledgments
xv
Part I: Introductory Concepts
1
Chapter 1: The Importance of Macroeconomics
3
Introduction
3
1.1 What is Macroeconomics?
5
1.2 Links Between Macroeconomics and Microeconomics
8
1.3 Current Core of Macroeconomic Theory
10
1.4 Macroeconomics – an Empirical Discipline
11
1.5 The Importance of Policy Applications
13
1.6 Positive and Normative Economics: Why Macroeconomists
Disagree
14
1.7 Roadmap of this Book
17
Key Terms and Concepts
19
Summary
19
Questions and Problems
20
Appendix: Thumbnail Sketch of the Development of Macroeconomics
22
Notes
27
Chapter 2: National Income and Product Accounts (NIPA)
28
Introduction
28
2.1 How the National Income and Product Accounts are
Constructed
28
2.2 Components of GDP: Final Goods and Services
30
2.3 Differences Between Final and Intermediate Goods and Services
36
2.4 Components of National Income
37
2.5 Balancing Items Linking GDP, NI, PI, and DI
46

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