Textbook Reading Guide – Unit 2 Circular Flow
Jim’s comments: Read Chapter 1 in the textbook. The table of contents for this chapter is shown below. In section 1.2, pay particular attention to the types of policy we analyze in macroeconomics. Section 1.3 is very important, especially the portion about circular flow model. The circular flow model shown in the textbook is very, very simple. You should read and study it as an intro to the concept of the model. Then follow up on that by reading my tutorial on the circular flow in the Closer Look Tutorials for Unit 2 page on this website. You’ll need that more in-depth model to be able to complete the worksheet for Unit 2.
Chapters 2, 3, 4, and 5 in the textbook really won’t be a part of this course, so they’re totally optional. You’ll study those topics in microeconomics. If you don’t have any background in economics and have never had a course in econ, you may want to read chapters 2, 3, and 4 to gather a bit more background about how we think in economics. If you do read them, just read the narrative. I wouldn’t spend a lot of time on the problems or analytical boxes or math in those chapters. Chapter 5 on elasticity isn’t really needed at all in this course.
Note: The links in this excerpt from the textbook table of contents will all open in this window/tab. To get back to this website and page, you’ll need to use your web browser’s “back” button or re-enter macro.econproph.net URL into your browser.