OpenStaxCollege

Measuring the Size of the Economy: Gross Domestic Product

<para>By the end of this section, you will be able to:</para><ul><li>Identify the components of GDP on the demand side and on the supply side</li><li>Evaluate how gross domestic product (GDP) is measured</li><li>Contrast and calculate GDP, net exports, and net national product</li></ul>

Introduction to Trigonometric Functions

Non-right Triangles: Law of Sines

In this section, you will:<ul><li>Use the Law of Sines to solve oblique triangles.</li><li>Find the area of an oblique triangle using the sine function.</li><li>Solve applied problems using the Law of Sines.</li></ul>

Tracking Real GDP over Time

<para>By the end of this section, you will be able to:</para><ul><li>Explain recessions, depressions, peaks, and troughs</li><li>Evaluate the importance of tracking real GDP over time</li><li>Analyze the impact of economic fluctuations on a country’s output and price level</li></ul>

Macroeconomic Perspectives on Demand and Supply

By the end of this section, you will be able to:<ul><li>Explain Say’s Law and determine whether it applies in the short run or the long run</li><li>Explain Keynes’ Law and determine whether it applies in the short run or the long run</li></ul>

Rational Functions

In this section, you will:<ul><li>Use arrow notation.</li><li>Solve applied problems involving rational functions.</li><li>Find the domains of rational functions.</li><li>Identify vertical asymptotes.</li><li>Identify horizontal asymptotes.</li><li>Graph rational functions.</li></ul>

Preface

Principles of Macroeconomics is designed for a one-semester macroeconomics introductory course. It is traditional in coverage, including introductory economics content, macroeconomics, and international economics. At the same time, the book includes a number of innovative and interactive features designed to enhance student learning. Instructors can also customize the book, adapting it to the approach that works best in their classroom.

Elasticity in Areas Other Than Price

<para>By the end of this section, you will be able to:</para> <ul> <li>Calculate the income elasticity of demand and the cross-price elasticity of demand</li> <li>Calculate the elasticity in labor and financial capital markets through an understanding of the elasticity of labor supply and the elasticity of savings</li> <li>Apply concepts of price elasticity to real-world situations</li> </ul>

How a Profit-Maximizing Monopoly Chooses Output and Price

<para>By the end of this section, you will be able to:</para> <ul> <li>Explain the perceived demand curve for a perfect competitor and a monopoly</li> <li>Analyze a demand curve for a monopoly and determine the output that maximizes profit and revenue</li> <li>Calculate marginal revenue and marginal cost</li> <li>Explain allocative efficiency as it pertains to the efficiency of a monopoly</li> </ul>

How Households Supply Financial Capital

By the end of this section, you will be able to:<ul><li>Show the relationship between savers, banks, and borrowers</li><li>Calculate bond yield</li><li>Contrast bonds, stocks, mutual funds, and assets</li><li>Explain the tradeoffs between return and risk</li></ul>

Introduction to International Trade

Entry and Exit Decisions in the Long Run

By the end of this section, you will be able to:<ul><li>Explain how entry and exit lead to zero profits in the long run</li><li>Discuss the long-run adjustment process</li></ul>