ECON for Macroeconomics

Name
Lecturer
Course
Date
Macroeconomics
Introduction
This paper highlights on the book “ECON for Macroeconomics” by William McEachern; and specifically deals with chapters four, five, six and seven. The topic “demand, supply, and markets” is part of the introduction while, the others topics “introduction to macroeconomics Productivity and Growth; and Tracking the U.S. Economy” deals with the fundamentals of macroeconomics” are in part two that deals with the fundamentals of macroeconomics.
Demand, supply, and markets
The first chapter “demand, supply, and markets” give a very good foundation to the reader since the markets are moved by the forces of demand and supply. This is based on the laws of demand and supply that hold other things constant (ceteris Paribas). McEachern, explains the relationship between price and quantity demanded; which indicates that when prices are high the quantity demanded is low and when prices are low the quantity demanded is high. The relationship is inversely proportional (McEachern, 91). This is a description of a perfect market and the author’s description suits any market that operates. The law of supply is also shows the relation between price and quantity supplied where when the price is low the quantity supplied is low and when the price is high the quantity supplied is high; the relation is directly proportional. If the two graphs are drawn then they show equilibrium where price and quantity are fit in the market. This is a good way to elaborate the forces in the market and his explanations are effective.
Introduction to Macroeconomics
The chapter Introduction to Macroeconomics explains on the study of the overall performance of economies. It highlights the issues of growth, inflation, macroeconomic policies, business cycles, aggregation and the international economy. The author also highlights on what macroeconomists are supposed to do in the forecasting, research, analysis and development of data in economic circles. He explains the changes that occur in the economy and how growth and development can be achieved (McEachern, 104). The evaluation of economic policies implemented by the government is also introduced since they indicate the failures or success of any economy.
McEachern, explains on the gross domestic product which is the value of goods and services generated in a country in a given time (mostly annually). The need for macro economics is to achieve sustained growth in any country and ensure consumers are provided with the goods and services at the right price. The numerous issues that support the major economy become very essential since they must all balance to achieve growth and development (Fischer, 3). This chapter is very crucial to students since it helps them understand the dynamics that revolve around any economy and what factors can be adjusted to suit an ailing economy.
Productivit...