Table Of ContentTHE BUSINESS Learning Macroeconomic S Economics Collection
N
EXPERT PRESS A
Principles Using MAPLE R Philip J. Romero and Jeffrey A. Edwards, Editors
DIGITAL LIBRARIES R
Hal W. Snarr
EBOOKS FOR
Economics has been dubbed the “dismal science” since
BUSINESS STUDENTS
Thomas Carlyle coined the phrase in 1849. The 2008
Curriculum-oriented, born-
presidential candidate who said, “Economics is some-
digital books for advanced
Learning
business students, written thing that I’ve really never understood,” probably sides
by academic thought with this view. So, why is economics so dismal to so
leaders who translate real- many? Is it because it has become too mathematical? Macroeconomic
world business experience Is it because traditional textbooks fail to connect topics
into course readings and and models in a concise, cohesive, and meaningful way?
L
reference materials for Is it because the computer simulations that are used to E Principles Using
A
students expecting to tackle
teach economic principles “stifle students’ imagination, R
management and leadership N
contribute to a dependent learning style, and fail to
challenges during their IN MAPLE
stimulate interest in the subject matter” (Wetzstein
professional careers. G
1988)? Or, is it because economists from different schools M
POLICIES BUILT
of economic thought rarely agree on anything? A
BY LIBRARIANS C
R
• Unlimited simultaneous This book uses MAPLE and the simulation models that I O
usage developed in Learning Basic Macroeconomics (2014) to make E
C
• Unrestricted downloading teaching or learning economics more favorable. M APLE is O
and printing ideally suited for this because it allows users to assemble N
O
• Perpetual access for a
and systematically combine the various models that M
one-time fee
• No platform or form the aggregate market model, frees u sers from IC
maintenance fees doing tedious calculations and algebraic m anipulations, P
R
• Free MARC records and is as easy to use as Microsoft WORD. Building and I
N
• No license to execute analyzing the macroeconomic model using MAPLE is a C
I
The Digital Libraries are a fun way to learn the dismal science of economics. P
L
comprehensive, cost-effective E
Hal W. Snarr currently teaches at Westminster College, S
way to deliver practical
which is located in Salt Lake City, Utah. He graduated U
treatments of important S Hal W. Snarr
from Naval Nuclear Power School, has bachelor’s I
business issues to every N
degrees in both business and mathematics, and earned G
student and faculty member.
a PhD in economics from Washington State University. M
His teaching career began in the U.S. Navy, and today, A
P
Hal has a YouTube channel (The Snarr Institute) and L
E
For further information, a website (www.halsnarr.com), used to deliver lectures on
free trial, or to order, contact: macroeconomic principles and other topics in statistics
[email protected] and economics.
www.businessexpertpress.com/librarians Economics Collection
Philip J. Romero and Jeffrey A. Edwards, Editors
ISBN: 978-1-60649-530-8
Learning Macroeconomic
Principles Using MAPLE
Learning Macroeconomic
Principles Using MAPLE
Hal W. Snarr
Learning Macroeconomic Principles Using MAPLE
Copyright © Business Expert Press, LLC, 2015.
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, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the prior
permission of the publisher.
First published in 2015 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-60649-530-8 (paperback)
ISBN-13: 978-1-60649-531-5 (e-book)
Business Expert Press Economics Collection
Collection ISSN: 2163-761X (print)
Collection ISSN: 2163-7628 (electronic)
Cover and interior design by Exeter Premedia Services Private Ltd.,
Chennai, India
First edition: 2015
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Abstract
Economics has been dubbed the “dismal science” since Thomas Carlyle
coined the phrase in 1849. The 2008 presidential candidate who said,
“Economics is something that I’ve really never understood,” probably
sides with this view. So, why is economics so dismal to so many? Is it
because it has become too mathematical? Is it because traditional text-
books fail to connect topics and models in a concise, cohesive, and mean-
ingful way? Is it because the computer simulations that are used to teach
economic principles “stifle students’ imagination, contribute to a depen-
dent learning style, and fail to stimulate interest in the subject matter”
(Wetzstein 1988)? Or, is it because economists from different schools of
economic thought rarely agree on anything? This book uses MAPLE and
the simulation models that I developed in Learning Basic Macroeconomics
(2014) to make teaching or learning economics not so dismal. MAPLE
is ideally suited for this because it allows users to assemble and systemati-
cally combine the various models that form the aggregate market model,
frees users from doing tedious calculations and algebraic manipulations,
and is as easy to use as Microsoft Word. Building and analyzing the mac-
roeconomic model using MAPLE is a fun way to learn the dismal science.
Keywords
aggregate demand, aggregate expenditure, austrian economics, computer
simulation, con sumption function, crowding-out, demand and supply,
discount rate, dismal science fiscal policy, fiscal policy lags, fiscal policy
multipliers, fractional reserve banking, free trade, interest on reserves,
long run aggregate supply, maple 18, monetary policy, open market oper-
ations, rational expecta tions, required reserves ratio, short run aggregate
supply, supply-side economics, the chicago school, the classical school,
the federal funds market, the keynesian school
Contents
Acknowledgments �����������������������������������������������������������������������������������ix
Introduction ������������������������������������������������������������������������������������������xi
Chapter 1 How to Use MAPLE .........................................................1
Chapter 2 Foundations of Macroeconomics .......................................9
Chapter 3 Aggregate Expenditure ....................................................41
Chapter 4 The Aggregate Market Model .........................................57
Chapter 5 Fiscal Policy.....................................................................77
Chapter 6 Monetary Policy .............................................................97
Chapter 7 What Have We Learned? ..............................................123
About the Author ��������������������������������������������������������������������������������129
References �������������������������������������������������������������������������������������������131
Index �������������������������������������������������������������������������������������������������135
Acknowledgments
I am indebted to my wife Lynn. Her encouragement and support is much
appreciated.
