Errata How to think and reason in Macroeconomics

Errata How to think and reason in Macroeconomics

How to think and reason in Macroeconomics
FOURTH EDITION
Frederick C v N Fourie • Philippe Burger
Errata
Pages 118, 122, 190, 246 and 273 – maths boxes:
( 
( 
)
)
M
Wherever the formula ​ ___
​ MP   ​2 lπ  ​ appears it should be ​ ​ ___
P   ​1 lπ  ​
S
S
Please compare the following corrected figures to figures
in the text book if needed:
Figure 4.25a Fiscal stimulus and the confidence crisis in the Greek
Economy on pg 207:
IS shifts right in initial fiscal
stimulus and left in later
fiscal contraction
r
IS0
r1
r3
IS1
LM shifts right in the first
BoP adjustment, then left in
second BoP adjustment
BP1
LM0
LM1
1
3
BP0
r2
r0
LM2
2
0
BP shifts up and rotates
anticlockwise
Y3 Y0
Y1 Y2
Y
REMOVE the blue arrow pointing downwards from point 3 –
revealing the bottom half of the IS0-curve.
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Figure 4.25b Fiscal austerity and the German economy on pg 209:
LM shifts right in the first
BoP adjustment, then left in
second BoP adjustment
r
IS0
IS1
LM1
LM0
LM2
BP0
0
r0
2
r2
r1
BP1
1
3
r3
Y2 Y1 Y3
Y0
Y
The blue arrow pointing downwards is REMOVED from point 1 –
revealing the bottom half of the IS1-curve.
Figure 8.6 A balanced per capita growth point on page 346:
The equation for the ‘Required investment per worker’ curve must
include ‘+ a’:
Required
investment
per worker
Y/N
and
I/N
​ t  ​ 
5 ( 1 n 1 a) __
N
K
t
TP 5 f(K/N; A)
Actual investment
per worker
5 s·f(K/N; A)
Y0 /N0
K0 /N0
ii
K/N
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